ONT has been wedging in the last two weeks. The coin has been creating set of lower highs and the higher lows and has now managed to come all the way to the end of the wedge without a break out/down. Given that the coin is oversold on the daily chart, we may now start to move higher in case the price first breaks and comfortably closes above the wedge resistance.
If this option happens, which is more likely to be the case in our opinion, the price should look for the next level of resistance around 0.40000, which is a triple confluence of the 38.2% Fibonacci retracement, 200 MA on the H4 chart and a down sloping trend line. This mix of resistance levels will likely cause the price to immediately rotate lower, at least for a correction. Be wary of the price stopping first around 0.38800 level, which is a horizontal resistance. In any case, we expect the price eventually to reach the 38.2% retracement level.
All in all, if you are looking to go long ONT for the fundamental reasons, first wait for the wedge to be broken before entering into the trade. In that case, following levels are to be followed:
ONT
ENTRY: 0.37000 (or any closing level above the wedge)
Stop: 0.35500
Profit-taking area: 0.40000
If this option happens, which is more likely to be the case in our opinion, the price should look for the next level of resistance around 0.40000, which is a triple confluence of the 38.2% Fibonacci retracement, 200 MA on the H4 chart and a down sloping trend line. This mix of resistance levels will likely cause the price to immediately rotate lower, at least for a correction. Be wary of the price stopping first around 0.38800 level, which is a horizontal resistance. In any case, we expect the price eventually to reach the 38.2% retracement level.
All in all, if you are looking to go long ONT for the fundamental reasons, first wait for the wedge to be broken before entering into the trade. In that case, following levels are to be followed:
ONT
ENTRY: 0.37000 (or any closing level above the wedge)
Stop: 0.35500
Profit-taking area: 0.40000