Bullish Retest Opportunity on NWC
In this analysis I am going to break down all the most important technicals on NWC/USDT and explain how to make use of all of them to come up with a nice 3+ risk reward trade set-up.
After the price has been coming down from the all time high we see that two major horizontal support zones have been formed. The lowest one (level II in the chart) has just been confirmed twice, with proving very strong support.
The highest one provided support earlier on in the chart but now got broken recently around the 1st of October. Bear in mind however that all altcoincs went down recently and that a drop in price of any altcoin is not necessarily due to the company's performance but might also be due to general market conditions.
Even after the price breaks through a zone you can still keep the zone on your chart as the area might be useful later. In this case we see that through an S/R flip the old support zone will turn into resistance first, and now potentially into support again!
I will monetize on this scenario in this trade set-up by suggesting a long position using a bullish retest on the 4h.
For this trade I suggest an entry near the horizontal support zone at the first level. This is the most logical place for a change in momentum on NWCUSDT.
For the stop loss I would look at the second level horizontal support. This is a stronger support area that held many times before, so the chance is relatively low that the price will go below it.
For the take profit, the most logical place for the first target would be near the previous ATH, giving a potential profit of 51%. Beyond target 1, we reach the moon area where no clear technicals can give us profit targets. Simply hold beyond this level for unlimited potential.
The total risk reward for this set-up would be 3.16.
If we look at the fundamental side, I highlighted a few important events on the chart that explain a few price moves. Previously I mentioned the Vera Chain audit that caused a major increase in price.
Today we can see that the Apple Pay announcement caused the price to increase by over 20%. The logic behind it is obvious, as more payment methods are being added more and more customers are able to buy the NWC token, increasing the demand while keeping supply stable. This shift in classic economics will always cause the price to go up.
Follow me for consistent high quality updates, with clear explanations and charts.
Please like this post to support me.
- Trading Guru
--------------------------------------------------------------
Disclaimer!
This post does not provide financial advice. It is for educational purposes only!
After the price has been coming down from the all time high we see that two major horizontal support zones have been formed. The lowest one (level II in the chart) has just been confirmed twice, with proving very strong support.
The highest one provided support earlier on in the chart but now got broken recently around the 1st of October. Bear in mind however that all altcoincs went down recently and that a drop in price of any altcoin is not necessarily due to the company's performance but might also be due to general market conditions.
Even after the price breaks through a zone you can still keep the zone on your chart as the area might be useful later. In this case we see that through an S/R flip the old support zone will turn into resistance first, and now potentially into support again!
I will monetize on this scenario in this trade set-up by suggesting a long position using a bullish retest on the 4h.
For this trade I suggest an entry near the horizontal support zone at the first level. This is the most logical place for a change in momentum on NWCUSDT.
For the stop loss I would look at the second level horizontal support. This is a stronger support area that held many times before, so the chance is relatively low that the price will go below it.
For the take profit, the most logical place for the first target would be near the previous ATH, giving a potential profit of 51%. Beyond target 1, we reach the moon area where no clear technicals can give us profit targets. Simply hold beyond this level for unlimited potential.
The total risk reward for this set-up would be 3.16.
If we look at the fundamental side, I highlighted a few important events on the chart that explain a few price moves. Previously I mentioned the Vera Chain audit that caused a major increase in price.
Today we can see that the Apple Pay announcement caused the price to increase by over 20%. The logic behind it is obvious, as more payment methods are being added more and more customers are able to buy the NWC token, increasing the demand while keeping supply stable. This shift in classic economics will always cause the price to go up.
Follow me for consistent high quality updates, with clear explanations and charts.
Please like this post to support me.
- Trading Guru
--------------------------------------------------------------
Disclaimer!
This post does not provide financial advice. It is for educational purposes only!
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