Ether is oversold on the daily time frame and is headed towards a strong long term support trend line (Blue). This looks like a great buy opportunity with profit targets set at the .786 and .618 fib lines from the All Time Highs. There is also a hidden bullish divergence forming on the RSI that further confirms the bullish reversal set up.
My only concerns with this trade would be bitcoins recent weakness and ability to drag Ether down with it. If Ether falls below the blue long term support trend line we could see prices dip back into the 300's. The plus side is ETHBTC has been dropping heavily too, and is due for a bounce. Nevertheless Stop losses should be utilized accordingly. I will have my entry set at today's low of 475 and a stoploss set at 449. Wish me luck.
Disclaimer: I am very new to trading and any constructive criticism is very much encouraged. Thank you :)
My only concerns with this trade would be bitcoins recent weakness and ability to drag Ether down with it. If Ether falls below the blue long term support trend line we could see prices dip back into the 300's. The plus side is ETHBTC has been dropping heavily too, and is due for a bounce. Nevertheless Stop losses should be utilized accordingly. I will have my entry set at today's low of 475 and a stoploss set at 449. Wish me luck.
Disclaimer: I am very new to trading and any constructive criticism is very much encouraged. Thank you :)
Trade closed: stop reached:
Well this is why we use stop losses... Looking to re-enter a trade on ether when the red long-term trend breaks and the daily closes above trend. Will post a new idea when I enter that trade. Good luck everyone!
Comment:
Targets were good here. Just jumped into the trade too early.