Uniswap Bull Spike! Are we going back down to $5.70?

Uniswap took off like a rocket after making contact with the 200EMA, going from $4.85 to $6.30, a nice 30% rip! We're now approaching the bull channel resistance, will we keep going up? Or will we see a rejection and fall back down to the previous support?

How do we trade this?

This isn't a reasonable to long or short this timeframe. The gap between the 200EMA and the bull channel resistance has been closed and if we're going to short, we need a sell signal bar and confirmation bar before we enter. RSI is near 80.00, a weak indicator by itself, but supports the other points of this analysis.

If the price breaks above the bull channel resistance and shows support, then it may be reasonable to long.


Key Points

1. Strong bounce back into the Bull Channel.
2. Price near Bull Channel Resistance.
3. Wait for a sell signal at Bull Channel Resistance.
4. RSI near 80.00, More Down than Up.
5. If shorting, reasonable take profit at $5.70


You are solely responsible for your trades, trade at your own risk!


Let us know what you think in the comment section below!

Comment:

Strong sell signal bar on November 23rd at 19:00! The price action is still respecting the bull channel and is likely to head closer to the previous resistance at $5.63.