I have discussed for a little while now that I think we're going higher over the course of summer to give a wave IV more time to complete in relation to it's wave III counterpart. I am still of that opinion. Aside from the time factor simply not looking right, I don't have a bearish structure pointing us much lower than $26 right now. Therefore it's hard to adopt the direct route to new lows has started. Additionally, I though this B wave decline would be more drawn out that it appears. Nonetheless, it seems Solana has taken a more direct approach to completing this B wave bottom.
Trade Set-Up:
I stopped out last night and I am back in at $31.30 with a small long. THIS IS A SMALL LONG. Did I say SMALL enough times? I'm NOT swinging for the fences. I had originally proposed going long at $31.30, I just thought it would be next week before price got there. My original idea was to set my stop at $27. I am NOT doing that. I have set my stop to $28.50 which is just below the .786 retracement level of this A wave. Whereas, I could be wrong in my analysis and SOL decides to go to new lows...but with no immediately impulsive bearish structure and the time factor not looking right...I believe this short term trade has a good chance of generating profits.
Lastly, Purple and Black now point to the 1.0 extension at $51-$52 area. Risk/Reward is 2:20 so I'm not giving it a lot of room to prove me wrong. In the area of $51-$52 that should complete wave IV setting us up for our final decline end of summer.
Best to all,
Chris
Trade Set-Up:
I stopped out last night and I am back in at $31.30 with a small long. THIS IS A SMALL LONG. Did I say SMALL enough times? I'm NOT swinging for the fences. I had originally proposed going long at $31.30, I just thought it would be next week before price got there. My original idea was to set my stop at $27. I am NOT doing that. I have set my stop to $28.50 which is just below the .786 retracement level of this A wave. Whereas, I could be wrong in my analysis and SOL decides to go to new lows...but with no immediately impulsive bearish structure and the time factor not looking right...I believe this short term trade has a good chance of generating profits.
Lastly, Purple and Black now point to the 1.0 extension at $51-$52 area. Risk/Reward is 2:20 so I'm not giving it a lot of room to prove me wrong. In the area of $51-$52 that should complete wave IV setting us up for our final decline end of summer.
Best to all,
Chris
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