In the daily charts, we can solve an interesting puzzle, which will be very simple for many, but completely incomprehensible for some. Three white rectangles are important areas for the price. From the bottom is the balance range where there is a huge buyer armed with a huge long position on ethereum and waving it like a club with each approach of sellers. In the middle there is the range of the public candle - the area of those buyers who supported the initial momentum on the "cooling" market. They reached the level 300 without special resistance from the sellers given a volume slightly above average. The next day's candle turned red, but it closed above the middle of the green marubozu, which serves as an additional signal in favor of purchases. Above is the range of great opportunities, in which there are no significant barriers to repeating historical highs and achieving new targets around 500-550. It is there that the soul of buyers is striving to go through the key level 300. Spartans, to battle!
The local upward channel began with acceleration at the very beginning, so it has spare bottom. And even if the two boundaries of the upward channel (275-278, 265-270) can not stand the attack of sellers, whom by the way I have not seen on the market after the last fall. In this case, there will be one more and the most significant support around 245-255 , where the same buyer with a long club will appear on the battle scene.
The key resistance in the way of buyers is level 300, which corresponds to 50% correction level from the previous decline. It is here that the largest litefinance_com_devtal volume and the temporary fair price in the current trade structure are located. I don´t see any further obstacles on the way to 400. Naturally, we should expect pauses, as at 330, but in general the road to historical highs will be open!
Good luck in your trading!
P.S. Did you like my article? Share it in social networks: it will be the best "thank you" :)
Useful links:
- I recommend trying to trade with a reliable broker here. The system allows you to trade by yourself or copy successful traders from all across the globe.
- Use my promo code BLOG to get a 50% deposit bonus on the LiteFinance platform. Simply enter this code in the appropriate field when funding your trading account.
- Telegram chat for traders: https://t.me/litefinancebrokerchat. We are sharing the signals and trading experience.
- Telegram channel with high-quality analytics, Forex reviews, training articles, and other useful things for traders https://t.me/litefinance
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteFinance broker. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2014/65/EU.
According to copyright law, this article is considered intellectual property, which includes a prohibition on copying and distributing it without consent.
