Etherium Analysis [UPDATE 23-05-2018]
After a shaky start, we have reached our profit taking area on ETHUSD as expected. This was a 3:1 trade with a 14% ROI and therefore taken partial profits.
Where to next?
I would anticipate profit taking to take place now and see a retracement. A likely place would be a re-test of the previous consolidation zone around the $690 to $705 area, which is also the neckline of the head and shoulders pattern. Yes, this is not a traditional neckline for a head and shoulders pattern, but that's a explanation for another day. Let's just say you will be in a position before the "traditional" head and shoulders traders and able to move to break-even sooner.
With projected profit targets still on the table, entering a short trade from this consolidation zone would offer a very good risk to reward (4:1) and ROI. The next profit zone for ETHUSD is $524.
This is the projected target of the head and shoulders pattern. There is confluence at this area which resides just above a previous consolidation zone (origin of a breakout pattern where demand exceeded supply) and the 61.8% retracement of the move from the April lows ($355) to beginning of May highs ($840).
As the overall crypto market is in a down trend, we must assume selling pressure is to remain. A solid break of the consolidation zone between $715 and $730 would result in a re-evaluation of the bearish assessment.
Disclaimer: This is only my opinion, make of it what you wish. It is not financial advice.
Where to next?
I would anticipate profit taking to take place now and see a retracement. A likely place would be a re-test of the previous consolidation zone around the $690 to $705 area, which is also the neckline of the head and shoulders pattern. Yes, this is not a traditional neckline for a head and shoulders pattern, but that's a explanation for another day. Let's just say you will be in a position before the "traditional" head and shoulders traders and able to move to break-even sooner.
With projected profit targets still on the table, entering a short trade from this consolidation zone would offer a very good risk to reward (4:1) and ROI. The next profit zone for ETHUSD is $524.
This is the projected target of the head and shoulders pattern. There is confluence at this area which resides just above a previous consolidation zone (origin of a breakout pattern where demand exceeded supply) and the 61.8% retracement of the move from the April lows ($355) to beginning of May highs ($840).
As the overall crypto market is in a down trend, we must assume selling pressure is to remain. A solid break of the consolidation zone between $715 and $730 would result in a re-evaluation of the bearish assessment.
Disclaimer: This is only my opinion, make of it what you wish. It is not financial advice.
Trade closed: target reached:
Over performance to the downside. Rallies to be sold, further downside highly probable.
Trade closed: target reached:
Longer term target reached
