ATOM hit absolute bottom, Time to Rally!?
Updated
Hey guys, today in this chart I am showing ATOM on the WEEKLY Timeframe.
ATOM has touched the WHITE support line 4 times now since March of 2020, and every single time it wicks it as support, ATOM has made HUGE Rallies.
To put into perspective I will list each date ATOM touched the white line, and the gain it had:
March 2020 - August 2020: 680% Gain
June 2021 - July 2021: 90% Gain
July 2021 - September 2021: 380% Gain
And NOW: February 2022 - X: ?% Gain
These Gains are No Joke, but we have to look at more indicators for confirmation that we can achieve similar status this go around.
Every time ATOM has touched the white support line, the top RSI ALSO used the bottom most line of the trend channel as support before blasting off.
Have we done that this time? YES!
Now for the trading plan:
The weekly candle will close in 7 hours from the time I am writing this. Ideally, it would be nice for ATOM to close inside of the blue trend channel on the price chart, which would be at around $28.50.
For myself, I plan to enter around $28.50, and am content having my stop loss at $22. My first TP is R1, or $44. As long as price can begin climbing toward that figure, I will be making a trailing stop loss, this way I can secure profits while making sure there is no way I can lose money on this trade. Once ATOM is nearing $44, I will continue to look at the chart, see how the RSI is doing, and see if ATOM will have the strength to get to the next blue resistance line on the trend channel, around $53. I will keep doing this for as long as it can maintain its momentum, while still raising my trailing stop loss.
All in all, I am content having a 22% SL, for a 57% gain or higher.
Be sure to do your own due dilligence, and have a great day.
ATOM has touched the WHITE support line 4 times now since March of 2020, and every single time it wicks it as support, ATOM has made HUGE Rallies.
To put into perspective I will list each date ATOM touched the white line, and the gain it had:
March 2020 - August 2020: 680% Gain
June 2021 - July 2021: 90% Gain
July 2021 - September 2021: 380% Gain
And NOW: February 2022 - X: ?% Gain
These Gains are No Joke, but we have to look at more indicators for confirmation that we can achieve similar status this go around.
Every time ATOM has touched the white support line, the top RSI ALSO used the bottom most line of the trend channel as support before blasting off.
Have we done that this time? YES!
Now for the trading plan:
The weekly candle will close in 7 hours from the time I am writing this. Ideally, it would be nice for ATOM to close inside of the blue trend channel on the price chart, which would be at around $28.50.
For myself, I plan to enter around $28.50, and am content having my stop loss at $22. My first TP is R1, or $44. As long as price can begin climbing toward that figure, I will be making a trailing stop loss, this way I can secure profits while making sure there is no way I can lose money on this trade. Once ATOM is nearing $44, I will continue to look at the chart, see how the RSI is doing, and see if ATOM will have the strength to get to the next blue resistance line on the trend channel, around $53. I will keep doing this for as long as it can maintain its momentum, while still raising my trailing stop loss.
All in all, I am content having a 22% SL, for a 57% gain or higher.
Be sure to do your own due dilligence, and have a great day.
Note
I am going to wait to enter into a buy position until the RSI on the 4hr chart is below 32. Ideally a little bit lower, but likely between 30-32 on the 4hr. This way I can try and buy in at the lowest price possible, and having a better risk:reward ratio, and minimizing my overall risk.
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