AXS- Bearish Divergence on RSI. $10 Next?
AXS went for an insane run when the entire crypto market was bleeding or going sideways. AXS remained incredibly strong and continued to move upwards. But as always, every good thing must come to an end and this AXS run is no exception.
It seems that AXS has run out of fuel and bearish divergence(Price makes higher high but rsi makes lower low) on RSI has been seen in 4H timeframe. Although divergence has not been seen on MACD (which would have made it more valid), it looks like a bearish cross on MACD is imminent in the 4H timeframe.
AXS can always invalidate this divergence and still make a higher low as it just did earlier but the highs in RSI are getting lower and lower and I think this run has to come down, this time a bit deeper.
I am shorting it and taking profit at around $10.92 or $11 area.
My plan:
Short
Entry: 18-21.5 (As AXS can quickly make another spike before dropping)
Target: 11
Stop loss: 25.5
It seems that AXS has run out of fuel and bearish divergence(Price makes higher high but rsi makes lower low) on RSI has been seen in 4H timeframe. Although divergence has not been seen on MACD (which would have made it more valid), it looks like a bearish cross on MACD is imminent in the 4H timeframe.
AXS can always invalidate this divergence and still make a higher low as it just did earlier but the highs in RSI are getting lower and lower and I think this run has to come down, this time a bit deeper.
I am shorting it and taking profit at around $10.92 or $11 area.
My plan:
Short
Entry: 18-21.5 (As AXS can quickly make another spike before dropping)
Target: 11
Stop loss: 25.5
Komen:
Correction: There should have been AXS can still make higher high in the third paragraph.
