BCH: Oversold at Support
Trade setup: Trends are mixed but price remains above 200-day moving average, which keeps the long-term Uptrend alive. Price has pulled back to 200 SMA (support) and near $350 horizontal support, and also getting oversold (RSI ~ 30), which could be an attractive swing trade entry with +25% upside to $500. Stop Loss (SL) at $340.
Pattern: Price is Oversold at Support. This trading strategy finds assets that are oversold (RSI < 30) and are near a support area, which means there's a high probability that price will bounce up near-term. Oversold conditions are typically reached when RSI hits 30 or less. Learn this trading strategy in Lesson 5.
Trend: Short-term trend is Strong Down, Medium-term trend is Strong Down and Long-term trend is Neutral.
Momentum: Price is neither overbought nor oversold currently, based on RSI-14 levels (RSI > 30 and RSI < 70).
Support and Resistance: Nearest Support Zone is $350.00, then $300.00. Nearest Resistance Zone is $400.00, then $530.00.
Pattern: Price is Oversold at Support. This trading strategy finds assets that are oversold (RSI < 30) and are near a support area, which means there's a high probability that price will bounce up near-term. Oversold conditions are typically reached when RSI hits 30 or less. Learn this trading strategy in Lesson 5.
Trend: Short-term trend is Strong Down, Medium-term trend is Strong Down and Long-term trend is Neutral.
Momentum: Price is neither overbought nor oversold currently, based on RSI-14 levels (RSI > 30 and RSI < 70).
Support and Resistance: Nearest Support Zone is $350.00, then $300.00. Nearest Resistance Zone is $400.00, then $530.00.
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