Descending Channel: The price is currently moving within a descending channel, indicating a downtrend. However, the annotation suggests a potential bullish breakout if certain conditions (such as deploying a bridge with Solana) are met.
Support and Resistance Levels: The chart shows several horizontal lines representing support and resistance levels:
Resistance at approximately $0.011946, $0.009130, and $0.007360.
Support at approximately $0.005267 and $0.003000.
Indicators Used:
Market Cipher B: Shows divergences and other momentum oscillators.
RSI (Relative Strength Index): Currently around 23.79, indicating oversold conditions.
Stochastic Oscillator: Indicates a possible reversal, with current readings suggesting a bottoming out.
Annotated Points:
A "Strong Buy Position" is indicated near the bottom of the descending channel, suggesting this as a potential entry point for a long position.
A bullish movement is expected, provided there is a catalyst (like a bridge deployment with Solana).
Trading Plan
Intraday Trading
Entry Point: Look for entry around the current support level of $0.005267, especially if there are bullish signals like a bullish divergence on Market Cipher B or a crossover on the Stochastic.
Target Levels: Consider scaling out of positions near the immediate resistance at $0.007360.
Stop Loss: Place a stop loss slightly below the support at $0.005267 to minimize risk.
Additional Notes: Since RSI is oversold, any bounce could be sharp, so be ready to manage trades actively.
Scalping
Entry Point: Enter positions on short-term oversold conditions, especially when the Stochastic Oscillator crosses upwards in the lower range (20-25).
Target Levels: Aim for quick profits, targeting 1-2% moves within the support-resistance range.
Stop Loss: Tight stop loss to avoid getting caught in a larger downward move, around 0.5% below the entry price.
Additional Notes: Monitor the price action closely around key support and resistance levels, and consider using a trailing stop to lock in profits as soon as the trade moves in your favor.
Swing Trading
Entry Point: Consider entering a position near the current support level or after a confirmed breakout above $0.007360.
Target Levels:
First target at $0.009130, the next significant resistance level.
Second target around $0.011946 if momentum continues.
Stop Loss: A stop loss slightly below $0.005267 or based on a confirmed breakdown of the descending channel.
Holding Period: Expect to hold the position for several days to weeks, depending on how the market evolves and any news regarding partnerships or technological developments.
Long Position Advice: Given the current oversold conditions on both RSI and the Stochastic Oscillator, there is a good probability of a short-term bounce. However, the broader trend remains down within the descending channel, so caution is warranted.
Risk Management: Ensure you have clear stop losses and are ready to exit if the price falls below key support levels, as the descending channel indicates the possibility of continued downtrend until a breakout is confirmed.
Catalyst to Watch: Keep an eye on any news or announcements regarding Velas, particularly related to the Solana bridge, as this could trigger the anticipated bullish move.
Given the indicators and market structure, a cautiously optimistic approach seems prudent. If the price breaks out of the descending channel with volume, a more aggressive long position could be considered.
Support and Resistance Levels: The chart shows several horizontal lines representing support and resistance levels:
Resistance at approximately $0.011946, $0.009130, and $0.007360.
Support at approximately $0.005267 and $0.003000.
Indicators Used:
Market Cipher B: Shows divergences and other momentum oscillators.
RSI (Relative Strength Index): Currently around 23.79, indicating oversold conditions.
Stochastic Oscillator: Indicates a possible reversal, with current readings suggesting a bottoming out.
Annotated Points:
A "Strong Buy Position" is indicated near the bottom of the descending channel, suggesting this as a potential entry point for a long position.
A bullish movement is expected, provided there is a catalyst (like a bridge deployment with Solana).
Trading Plan
Intraday Trading
Entry Point: Look for entry around the current support level of $0.005267, especially if there are bullish signals like a bullish divergence on Market Cipher B or a crossover on the Stochastic.
Target Levels: Consider scaling out of positions near the immediate resistance at $0.007360.
Stop Loss: Place a stop loss slightly below the support at $0.005267 to minimize risk.
Additional Notes: Since RSI is oversold, any bounce could be sharp, so be ready to manage trades actively.
Scalping
Entry Point: Enter positions on short-term oversold conditions, especially when the Stochastic Oscillator crosses upwards in the lower range (20-25).
Target Levels: Aim for quick profits, targeting 1-2% moves within the support-resistance range.
Stop Loss: Tight stop loss to avoid getting caught in a larger downward move, around 0.5% below the entry price.
Additional Notes: Monitor the price action closely around key support and resistance levels, and consider using a trailing stop to lock in profits as soon as the trade moves in your favor.
Swing Trading
Entry Point: Consider entering a position near the current support level or after a confirmed breakout above $0.007360.
Target Levels:
First target at $0.009130, the next significant resistance level.
Second target around $0.011946 if momentum continues.
Stop Loss: A stop loss slightly below $0.005267 or based on a confirmed breakdown of the descending channel.
Holding Period: Expect to hold the position for several days to weeks, depending on how the market evolves and any news regarding partnerships or technological developments.
Long Position Advice: Given the current oversold conditions on both RSI and the Stochastic Oscillator, there is a good probability of a short-term bounce. However, the broader trend remains down within the descending channel, so caution is warranted.
Risk Management: Ensure you have clear stop losses and are ready to exit if the price falls below key support levels, as the descending channel indicates the possibility of continued downtrend until a breakout is confirmed.
Catalyst to Watch: Keep an eye on any news or announcements regarding Velas, particularly related to the Solana bridge, as this could trigger the anticipated bullish move.
Given the indicators and market structure, a cautiously optimistic approach seems prudent. If the price breaks out of the descending channel with volume, a more aggressive long position could be considered.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.