White line is MVC's entry price.
SUSHI/USDT had a nice bounce off this last "9 buy" and support at ~7.50. The stochastic RSI has flipped and is exiting the the oversold territory. Both bullish signs. However, despite these positives, there are too many bearish signs to jump in a trade. With the reversal on the "9 buy" all I can expect for now is a 1-4 candle correction (which we are in the middle of) before a continuation of this down trend. Additionally, this latest swing (while not creating a new swing low) created a new daily swing close. Not only are we back below the 200 SMA, but we are about to have a death cross of the 50 and 200 SMA. Unless SUSHI can avoid rallying into and getting rejected by the death cross and break the strong resistance (shown in red) at 13.50, a long trade is too risky.
SUSHI/USDT had a nice bounce off this last "9 buy" and support at ~7.50. The stochastic RSI has flipped and is exiting the the oversold territory. Both bullish signs. However, despite these positives, there are too many bearish signs to jump in a trade. With the reversal on the "9 buy" all I can expect for now is a 1-4 candle correction (which we are in the middle of) before a continuation of this down trend. Additionally, this latest swing (while not creating a new swing low) created a new daily swing close. Not only are we back below the 200 SMA, but we are about to have a death cross of the 50 and 200 SMA. Unless SUSHI can avoid rallying into and getting rejected by the death cross and break the strong resistance (shown in red) at 13.50, a long trade is too risky.
Comment:
1-4 candle correction and continuation of downtrend played out beautifully. Tomorrow will have a 9 buy which might provide relief; however, the cross of the 50 SMA and 200 SMA comes tomorrow (6/25) as well. SUSHI seemed to have made a double bottom at $6, but I wouldn't count on it holding. The next level of support is at 5 dollars.
