Inverted H&S formed, probable channel shift, $8K coming

5 thg 1, 2020

So the inverted head and shoulders I was looking for since Dec 23rd is so far playing out perfectly, albeit I predicted the pattern to take a few days longer to form. We bounced exactly off the trend-line support at $6,860 (on Coinbase Pro), a trend-line that has held for 5 years and immediately formed a bullish engulfing candle which closed to show some solidarity.

My entry at $6,860 was about as perfect as it gets and now I am enjoying a nice buffer.

As soon as we break $7,500 (assuming we do) then 8K should be an easy next stop, however we will run into trend-line resistance and probably see a short sell-off at 8K. Assuming it holds above $7,500-$7,700, another bounce would put us above trend-line resistance, break us out of the 7-month downward channel, and in my opinion, lead us into another bull run where we take $10,000 (maybe for good).

As of right now it looks like we're leaving behind the 7-month downward channel and moving up the 5-year long-term support line.

So far so good, but always must keep in mind the market can tank for nearly no reason at the drop of a dime. I have stops set at $7,000 just in case, I won't lose money, won't make much either, but given the pattern forming I think I'll be pushing my stops up here very soon.

Sideways movement for more than 48 hours I'm getting on edge and probably looking to sell.....

6 thg 1, 2020

Giao dịch đang hoạt động

A little behind schedule, but going as planned. Massive resistance at $8,000. Looking to sell at $7,960

7 thg 1, 2020

Giao dịch đang hoạt động

Being greedy, pulled my sell order $7,960 and set stop loss at $7,800. We chewed through the sell-wall at $8,000 fairly well (ate through 1/2 immediately). It's possible we break through, would hate to miss another surge if we do for $150. Probably should have sold and stuck to plan. Time will tell.

7 thg 1, 2020

Đóng lệnh: dừng lỗ

Stopped out at $7,795. It seems my initial intuition of selling at $7,960 was the best decision. Either way, good play. Took 13.6% profit on this play in 5 days. Good start to 2020!!
One of two things will pull me back in. Either a) a surge that breaks $8,000 or b) strong support clustering at either $7,000 or $7,500. Be aware, we could pump to $9,000+ at the drop of a dime. I don't believe we'll see below $7,000 again, maybe a dip, but not sustained. If we do that sends us below long-term (5-year) logarithmic trendline and would be bad news for bulls.

7 thg 1, 2020

Ghi chú

Got back in at $7,870 with the bullish engulfing at the 15min candle. 8K breached, will it hold? Looking good.....