I am putting on a long trade based on the falling wedge and Adam and Eve Bottom patterns.
The orange block denotes the support zone with an upper level of $9660 and a lower level of $9100. I am looking to enter at current prices and at a retest of the upper level of the support zone. I’m not interested in keeping the trade on if we fall much lower than that. As such I am placing buy orders at the current price of $10000 and $9700 with a stop loss at $9500.
$11000 is the first target I’m looking for to the upside which would see us testing a significant local high and historical level of support/ resistance.
The second longer term target is found by measuring the base of the wedge drawn in pink projected from the breakout point of the wedge to the upside indicating a target in-line with another previous significant high at $13100 where I’d expect resistance.
Summary
The orange block denotes the support zone with an upper level of $9660 and a lower level of $9100. I am looking to enter at current prices and at a retest of the upper level of the support zone. I’m not interested in keeping the trade on if we fall much lower than that. As such I am placing buy orders at the current price of $10000 and $9700 with a stop loss at $9500.
$11000 is the first target I’m looking for to the upside which would see us testing a significant local high and historical level of support/ resistance.
The second longer term target is found by measuring the base of the wedge drawn in pink projected from the breakout point of the wedge to the upside indicating a target in-line with another previous significant high at $13100 where I’d expect resistance.
Summary
- Entry - $10000 and $9700
- Stop Loss - $9700
- Targets - $11000 and $13100
- Risk/ Reward Ratio – 1:2 (worst case) and 1:17 (best case)