Bitcoin is pulling back. Great timing to enter the rally. Question is WHERE exactly? Here are some potential entry points .
In no particular order:
$1,900: Confirmed support/resistance level (once).
$2,200: Mildly confirmed resistance level and 38.2% Fibonacci Retracement level.
$1,700: Pinpointed sup/res confirmation and 61.8% Fib level. The strongest...
Amaya shares $AYA soared 18% as Pokerstars return to US, but selling power still looks strong.
Note the red candlestick on Thursday despite the gap up and the spike in Volume beneath it. If you are looking for reversals, on the other hand, MACD divergence may indicate a likely downtrend's reversal.
What do you think?
Although the support level is shown on the weekly chart, also notice the MACD divergence on the daily chart.
Using a soft stop loss of $0.50 and a hard one of $1, I'm looking to make $2.50 per share for a 5:1 reward-to-risk ratio. Not being greedy, the profit target is even lower than $20, although climbing above that isn't unlikely, should the reversal occurs.
Although the pair is trading below 300-MA and MACD is bearish, I cannot ignore the bounce on the well-defined support/resistance level. Going for a high-reward/low-risk trade, which can be improved, if you pick the resistance at 1.5050.
A long-shot trade that needs another downward breakout to succeed. Yet, if the trend has enough fuel, we can move stop loss further below as long as the downfall moves forward. I'm moving SL to breakeven point when pair hits the 1:1 reward-risk ratio and will adjust accordingly.