Beware of BNB (Binance Coin)

Updated

is in downtrend from roughly 40 days.
Traders observing crazy bull run of BNB from past 3 months will be seeing this as a retracement and expecting a move up.

But look at the chart carefully, you will find that 0.0018500 resistance is too strong and BNB had a hard time breaking it in the past. Now it broke down from that resistance with good volume and also retested it (Retest is a sign of trend continuation). So be careful if you go long, this might be a bull trap.
In short - you may think it is part of first impulse wave 1-5 but it may be wave B of retracement wave ABC.

My play would be
1. Short it right now and try to ladder buy around 0.001400 resistance (10% profit) - stop loss at 0.0017500
2. Wait for a breakout above 0.0018500 with a good volume and go long from there - stop loss at 0.001800

Happy Hunting.

Note:- This is not a financial analysis.

Trade active

As you can see right now its rising and retesting the support at 0.001850, if it breaks above it (1 candle open and close above that resistance) with good volume then that resistance will become support and there will be high probability of uptrend.
If it got rejected then hopefully its going back to 0.0014.

But as an alt trader always watch BTC/USD movements. This recent uptrend is only because BTC

Note

This uptrend is only because BTC is retracing downward at the moment. If BTC is back in uptrend then BNB won't be able to maintain this uptrend.

Trade active

If BNB ended going up then this is one of the possible scenario

Trade active

And if it is going down then this is another possibility

As a trader we can't ignore any of them.
But the key level is 0.00185, whether BNB breaks it or not will validate one theory and rejects other.

Trade active

Since BTC falls again BNB is trading above our 0.00185 resistance. In the next 30 min if 4 hr candle closes above the resistance our view will be bullish. And one may enter in a long position.
But don't buy with 100% of your capital. Instead try to buy small amounts (say 10%) within the green zone.

Our stop loss will be when a 4hr candle successfully open and close below 0.00185 resistance.

Note

If you have any questions feel free to ask

mustagfir

Also on:

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.