Hi traders,
I've been trading
SOLUSD
and
SRMUSD
for the past week and wanted to share my analysis and targeting with you so you could take advantage of the trades to come!
SOL in a new player in the DeFi game, and given the high-risk appetite of investors right now there's a good chance we'll be pumping very soon regardless of the company's progress as a whole.
But let's take a closer look at price action as price always tells the best story: (this is the title chart)
In the chart above we see two horizontal trading ranges (TR).
The AB trading range was created from the first point the previous uptrend faced definitive supply and changed course (A), and the first time it tried to continue the rally subsequently (B). This puts us in phase |B| of the Wyckoffian trading range. During this phase, shares are absorbed or distributed, and it is proceeded by Phase |C| which includes the "springboard" and the inception of a new trend in Elliott Wave terms.
We see clearly in the CD TR that phase |B| was, in fact, an accumulation, as it resolved to the upside after a clear spring action to produce the uptrending channel EF.
EF is created by a reverse trend channel, setting based on the first time supply entered to stop the up thurst (E), and the subsequent point where demand took over the price movement once more (F).
This uptrend resolves the larger TR through the Break-Out (B/O) bar. Obviously every significant move in the market needs to be tested, so the trend must reverse to produce the Backing Up Action (BU).
Keep in mind, that the FINAL TEST, has not yet fully resolved. The significant supply bar that we must overcome is highlighted in red. At around the open of this bar, supply took control and created a significant result to the downside.
We must first confidently close ABOVE the 4.7 area and test it before we become certain that the trend is going to continue.
Though at the same time, you may want to enter your probe positions as the market beings to absorb supply around the 4.4 - 4.6 area.
Let us take a closer look: (30 min chart)
This is a more detailed picture of the BU and its test. We again see two trading ranges, GH and IJ. Once again IJ looks like a spring out of a re-accumulation inside a larger re-accumulation.
Adherence to Line J, Close and test above G, and close and test above I are clear bullish targets that are going to act as our entry signals as well.
On the shorter term bearish side, we could see a test of H at around 4.3 or even below the open o the last 4H bullish sib bar. Even a break below and test of the A line on the larger timeframe would still adhere to the longer term bullish picture.
Finally, let's take a look at some targetting using PnF.
Our target with PnF puts us at the 2.14 level of the Fib Retracement at around $7. But I'd be taking initial profits at the 1.168 around $6
As always traders, securities trading is really risky and this analysis should not be constituted as investment advice and is solely used for educational purposes and my own trading ventures. I AM in this market, and I will be opening more shares intraday as we achieve higher objectives. I will be posting updates on the trade and if you make your decision to enter a trade with me, be sure to like and follow me to stay in the loop!
Good Luck and 'Till Next Time Traders!
I've been trading
SOLUSD
and
SRMUSD
for the past week and wanted to share my analysis and targeting with you so you could take advantage of the trades to come! SOL in a new player in the DeFi game, and given the high-risk appetite of investors right now there's a good chance we'll be pumping very soon regardless of the company's progress as a whole.
But let's take a closer look at price action as price always tells the best story: (this is the title chart)
In the chart above we see two horizontal trading ranges (TR).
The AB trading range was created from the first point the previous uptrend faced definitive supply and changed course (A), and the first time it tried to continue the rally subsequently (B). This puts us in phase |B| of the Wyckoffian trading range. During this phase, shares are absorbed or distributed, and it is proceeded by Phase |C| which includes the "springboard" and the inception of a new trend in Elliott Wave terms.
We see clearly in the CD TR that phase |B| was, in fact, an accumulation, as it resolved to the upside after a clear spring action to produce the uptrending channel EF.
EF is created by a reverse trend channel, setting based on the first time supply entered to stop the up thurst (E), and the subsequent point where demand took over the price movement once more (F).
This uptrend resolves the larger TR through the Break-Out (B/O) bar. Obviously every significant move in the market needs to be tested, so the trend must reverse to produce the Backing Up Action (BU).
Keep in mind, that the FINAL TEST, has not yet fully resolved. The significant supply bar that we must overcome is highlighted in red. At around the open of this bar, supply took control and created a significant result to the downside.
We must first confidently close ABOVE the 4.7 area and test it before we become certain that the trend is going to continue.
Though at the same time, you may want to enter your probe positions as the market beings to absorb supply around the 4.4 - 4.6 area.
Let us take a closer look: (30 min chart)
This is a more detailed picture of the BU and its test. We again see two trading ranges, GH and IJ. Once again IJ looks like a spring out of a re-accumulation inside a larger re-accumulation.
Adherence to Line J, Close and test above G, and close and test above I are clear bullish targets that are going to act as our entry signals as well.
On the shorter term bearish side, we could see a test of H at around 4.3 or even below the open o the last 4H bullish sib bar. Even a break below and test of the A line on the larger timeframe would still adhere to the longer term bullish picture.
Finally, let's take a look at some targetting using PnF.
Our target with PnF puts us at the 2.14 level of the Fib Retracement at around $7. But I'd be taking initial profits at the 1.168 around $6
As always traders, securities trading is really risky and this analysis should not be constituted as investment advice and is solely used for educational purposes and my own trading ventures. I AM in this market, and I will be opening more shares intraday as we achieve higher objectives. I will be posting updates on the trade and if you make your decision to enter a trade with me, be sure to like and follow me to stay in the loop!
Good Luck and 'Till Next Time Traders!