Yesterday I built a long from $8,607 - $8,628 expecting to see a bounce over the weekend. Unfortunately we continued to break down to $8,200. When the price did bounce it was short lived.
I am still holding onto my position, mainly due to how far out of equilibrium we still are. I have put on Bollinger Bands to help illustrate this fact. We have seen multiple candles close outside of the band and that is unsustainable.
In my opinion that leaves us with two options that are highly likely.
1. Bounce to $8,900 to test for resistance
2. Range for days/weeks until finding equilibrium
If I wasn’t fully entered then I would be building a long from $8,200 - $8,400. While it is possible that we continue falling from here without any bounce the risk reward is on a long is favorable.
Happy trading and remember that following is free!
I am still holding onto my position, mainly due to how far out of equilibrium we still are. I have put on Bollinger Bands to help illustrate this fact. We have seen multiple candles close outside of the band and that is unsustainable.
In my opinion that leaves us with two options that are highly likely.
1. Bounce to $8,900 to test for resistance
2. Range for days/weeks until finding equilibrium
If I wasn’t fully entered then I would be building a long from $8,200 - $8,400. While it is possible that we continue falling from here without any bounce the risk reward is on a long is favorable.
Happy trading and remember that following is free!
emasar Indicator is available for purchase at alphanalysis.io/product/emasar/