Short BCHUSD
Updated
BCH has painted a bearish divergence on the 4 hr time-frame. I will enter a short position if we lose the 4 hr 50 SMA since the previous couple of times the price dropped below the 4hr 50 SMA there was a sharp decline. I have highlighted this on the chart as well as the bearish divergence in the RSI. If a short position is opened targets will be in the $650-$660 range where we have strong support.
Note
We are testing the MA now. I'm looking at the 1hr chart now so it is the 200 SMA seen at $734 Note
As you can see we are testing the MA support once more. There is a bullish divergence on the hourly time-frame so I will wait for confirmation of broken support with a close below the 50 moving average on the 4hr time-frame. No position taken yet.Note
Trade active
We closed under the 50 MA support on the 4hr time-frame. I expect a small relief rally to maybe back test the MA support as resistance now then more down. I'll keep doing updates periodically. Note
The 4hr chart shows a possible new down trend channel forming. I'll be watching the 50 MA (purple) as a key resistance and have my stop set at 785 (previous high above the downtrend channel).
Trade closed: stop reached
Trade active
Disregard the last update, I thought my stop at 785 was hit on that last surge up but it turns out the high was a few points below my stop. We are currently trading right at the MA I've been watching (purple) which has crossed above the 4hr 100 MA (pink) which is a bullish sign. I'm going to hold my short with the same stop at 785. Note
BCH fell below the Purple 200 MA on our 1-hour chart and is now finding support on the pink 400 MA (same as 100 MA on 4-hour time-frame). I'm very curious to see which MA acts as the stronger support/resistance here. Note
Nice drop in price here! BCH has now lost the 100 MA (pink) and the 700 USD support. Next support is the trend-line formed by the previous two local lows shown in Cyan. Note
BCH rallied back above the 700 support/resistance which was expected with how oversold it was after that last drop. As you can see from the screenshot, there is a hidden bearish divergence on the 1-hour time-frame. Trade closed: target reached
There is a bullish divergence on the 4-hour time-frame and seeing as I'm up 10% on this trade, this is a good opportunity to book profits. Trade closed w/ 10% profit.Happy Trading :)
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.