BCH failed to break above the supply zone around the $470 area and was sent tumbling down back to the demand zone where we previously bounced off convincingly twice. Volume has accompanied this move, which is always a good sign but we seem to be running into resistance at the downtrend line but RSI keeps pushing higher and it looks like we might get another run at resistance.
For those who are a little less risk averse, they could try shorting near the top of the trendline and placing a tight stop or wait and see what type of reaction we get near the supply area, which coincides with the 23.6%FIB level. Stops can be placed in both instances above the SFP highs.
As always, we must keep an eye on BTC as an indicator of position direction as any strength or weakness will spill over to the rest of the market. If we do get a break and close above $470, we could see BCH make a move back up to the $500 supply zone.
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For those who are a little less risk averse, they could try shorting near the top of the trendline and placing a tight stop or wait and see what type of reaction we get near the supply area, which coincides with the 23.6%FIB level. Stops can be placed in both instances above the SFP highs.
As always, we must keep an eye on BTC as an indicator of position direction as any strength or weakness will spill over to the rest of the market. If we do get a break and close above $470, we could see BCH make a move back up to the $500 supply zone.
Please hit the 'like' button and give us a follow!
Let us know what you think below!
Thanks
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Profit target nearly hit as one could have closed once they saw price bouncing! Now flat and waiting for a retest of resistance.