ETH Price Action Analysis 17/03/19
Yesterday's trade worked out beautifully with a successful entry in the forecasted $136-137 pullback zone that I'm attributing more to luck than skill (that said, the more time I dedicate to TA, the luckier I'm getting). Now that we're in a position it's time to select a take profit point.
Here's what the chart looks like today:
The chart is once again painting a positive picture:
- Price is bullish above the Kijun line (which should provide decent support) and seems to be edging towards the upper Kumo span
- The far end of the cloud remains green
- Yesterday was an up day with higher high/higher low on greater volume
- The price is bouncing off the the liquidity zone around $136 as can be seen on the 4H chart below which shows that buyers are defending the region well
This provides us with one of two possible plays:
- Safer play: Set a take profit target the $145-147 region. There is very low liquidity between $138 and $147, meaning that should the price break through the initial resistance it is likely to run through the order-book and hit our target.
- More daring/profitable play: Technicals, fundamentals and sentiment are turning more bullish by the day. Set a take profit for the previous $167 swing high with the possibility of either scalping one of those nice long wicks, or, being in position for the next leg up whenever it happens. This will allow us a re-entry on the pullback.
My stack is on strategy 2. Our stoploss for both plays should be at $126.