I hope you got onto my previous successful ADA vs BTC trade from April. Here is the next set up I see coming.
As you can see we are getting close to the apex of a large triangle pattern – looking set to go up in about 4-5 days time. I don’t think the 23.6% Fib will provide any resistance. The 4100 resistance will provide some decent resistance from which we are likely to retrace (only as far back as the 23.6 Fib at the most – 3480ish). We will then bounce back with renewed vigour and tackle the Heavy Resistance Zone between 5170 and 5900.
Buy on confirmed breakout of the triangle with supporting volume – 2800ish
Stop Loss 2450-2500
Target 1 – 3400 (21%)
Target 2 – 4000 (42%)
Target 3 – 4500 (60%)
Target 4 – 5000 (78%)
Indicators:
- MACD has fizzled out showing we have plenty of room to go either way
- Stoch is not yet oversold but is around the 40 mark
- Aroon Up (50) is dropping but so is Aroon Down (7) indicating neither bulls nor bears have an edge here
- Accumulation/Distribution has remained steady despite the retracement from the resistance at 4100