MANA/BTC - Consolidation Support Bounce (20-30%)
MANA/BTC has established itself in a consolidation period since mid-Jan, and has therefore developed strong areas of support and resistance.
The price on the higher time frame is entering the support zone, and the lower time frame is providing multiple signals that bulls are re-entering the market and gearing up for a test of the resistance zone. If this happens we should be able to pocket a 20-30% trade.
Remember, the safest trade is to monitor the lower time frame chart for confirmation of an upward movement, and only enter once that is also reflected on the higher time frame. If you're a higher risk trader you could look to enter now, but be aware that there isn't much preventing the price dropping 25% if this support area is breached.
I'll keep updating the trade as it develops, and I'll try to provide a definitive entry point once it becomes apparent. But it could develop fairly quickly, as it looks to me like bullish action has been building up quite strongly, so be sure to monitor this one closely.
Cheers and good luck,
RJR
The price on the higher time frame is entering the support zone, and the lower time frame is providing multiple signals that bulls are re-entering the market and gearing up for a test of the resistance zone. If this happens we should be able to pocket a 20-30% trade.
Remember, the safest trade is to monitor the lower time frame chart for confirmation of an upward movement, and only enter once that is also reflected on the higher time frame. If you're a higher risk trader you could look to enter now, but be aware that there isn't much preventing the price dropping 25% if this support area is breached.
I'll keep updating the trade as it develops, and I'll try to provide a definitive entry point once it becomes apparent. But it could develop fairly quickly, as it looks to me like bullish action has been building up quite strongly, so be sure to monitor this one closely.
Cheers and good luck,
RJR
Comment:
The downward trend is continuing on both time frames, but it's definitely slowing on the H4 which is our lower time frame. We now want to see a transfer of this to the higher time frame to truly confirm what we're looking at.
At this point, everything is pointing towards a hugely oversold situation, which should lead (barring a collapse in price) to a movement back towards the resistance area.
My only concern is the VZO on the D1 time frame dipping below the zero line for the first time. If that continues it adds a level of uncertainty.
At this point I'm still waiting for confirmation to enter, as my conditional buy order wasn't triggered overnight.
At this point, everything is pointing towards a hugely oversold situation, which should lead (barring a collapse in price) to a movement back towards the resistance area.
My only concern is the VZO on the D1 time frame dipping below the zero line for the first time. If that continues it adds a level of uncertainty.
At this point I'm still waiting for confirmation to enter, as my conditional buy order wasn't triggered overnight.
Comment:
Okay, so MANA/BTC looks like it's bouncing off the support zone. The D1 chart is now reflecting a bounce through price action & VZO stabilization.
I'll be looking to enter at the 0.00001050 level, with a stop loss of 8%. The price target is then 0.0000350 (33%). At this point I'll be setting tight stop losses to evaluate what is going to happen. It could bounce downwards from the consolidation resistance, in which situation we would lock in profit. If it looks to breakout we can re-enter the trade once that has been confirmed.
I'll be looking to enter at the 0.00001050 level, with a stop loss of 8%. The price target is then 0.0000350 (33%). At this point I'll be setting tight stop losses to evaluate what is going to happen. It could bounce downwards from the consolidation resistance, in which situation we would lock in profit. If it looks to breakout we can re-enter the trade once that has been confirmed.
Trade active:
Trade active at 0.00001045 (bit earlier than initially stated, but liking the signs on this one). Stop loss at 0.00000950.
Comment:
MANA continues a slow crawl sideways/upwards.
The price is currently lower than the entry point, but the stop loss hasn't been challenged in any way.
The D1 chart is showing a solid bounce from support, which is an encouraging sign that, at the very least, price should now move back upwards to test the consolidation support zone.
It's looking like a 2-4 day trade at this point.
The price is currently lower than the entry point, but the stop loss hasn't been challenged in any way.
The D1 chart is showing a solid bounce from support, which is an encouraging sign that, at the very least, price should now move back upwards to test the consolidation support zone.
It's looking like a 2-4 day trade at this point.
Comment:
MANA continues its meandering path upwards.
The H4 time frame is showing a pullback, likely due to the short-term overbought situation. The main thing for us is that this doesn't translate through to the D1 time frame, and so far no sign is showing. The price still has a long way to go until it tests resistance again, and price has bounced solidly from support, so barring a market wide event, there's no reason to suggest that the upward movement won't continue.
The H4 time frame is showing a pullback, likely due to the short-term overbought situation. The main thing for us is that this doesn't translate through to the D1 time frame, and so far no sign is showing. The price still has a long way to go until it tests resistance again, and price has bounced solidly from support, so barring a market wide event, there's no reason to suggest that the upward movement won't continue.
Comment:
Brain fade. The image about says "Oversold on VZO + Stoch", whereas this should say "Overbought".
Trade closed manually:
Trade exited at 0.00001098 for a 5% profit. MANA has hit a snag at 0.00001100, and momentum is leaving the market. It's probably not helped by BTC's weakness (seriously, the quicker crypto decouples from BTC the better).
I'll keep an eye on this one and see if there are any signs of heading back towards our target level, but for now it's showing too much weakness. Better to lock in some profit than none at all :)
I'll keep an eye on this one and see if there are any signs of heading back towards our target level, but for now it's showing too much weakness. Better to lock in some profit than none at all :)
Personally, I'll be asleep for the next 8 hours so I've entered a conditional buy order of 0.00001140, which is above the high of the most recent daily candle. This means I may miss 7% profit from where the price is now, but it's a) better than missing a trade altogether, and b) far safer than entering now, when there isn't enough confirmation of an upward support bounce.