ENJ trade setup
Updated
Weekly: long term analysis
After more than 95% deep correction during the bear market,
ENJUSDT is confirming a reversal attempt on a weekly time frame. Volumes are increasing and hinting a reversal completion.
Short term analysis
The breakout of the resistance line happened at the beginning of March. Then we witnessed a nice pullback which confirmed the resistance is now acting as a support line. This offers us a good risk/reward setup to enter.
Strategy
Buy signal has been given from the bounce at the resistance line, entry is taken at this level around the 0.535$ mark
Invalidation
Mental Stop: just below the recent daily swing low. This setup proposes a nice Risk Reward
If prices retrace to this stop level we will wait for the weekly closing price then set a Stop loss ¼ or Risk below the weekly close price.
Risk = Distance between Mental stop and entry point.
After more than 95% deep correction during the bear market,
ENJUSDT is confirming a reversal attempt on a weekly time frame. Volumes are increasing and hinting a reversal completion.Short term analysis
The breakout of the resistance line happened at the beginning of March. Then we witnessed a nice pullback which confirmed the resistance is now acting as a support line. This offers us a good risk/reward setup to enter.
Strategy
Buy signal has been given from the bounce at the resistance line, entry is taken at this level around the 0.535$ mark
- Objective 1: Next resistance line (with Risk/Reward >2) at 0.74$ ( +38%)
- Objective 2: Next resistance around corresponding to the reversal pattern swing move target at the 1.14$ zone (+110%)
- Objective 3: Near the weekly ATH at 3.32$ ( +500%)
Invalidation
Mental Stop: just below the recent daily swing low. This setup proposes a nice Risk Reward
If prices retrace to this stop level we will wait for the weekly closing price then set a Stop loss ¼ or Risk below the weekly close price.
Risk = Distance between Mental stop and entry point.
Trade closed: stop reached
Our mental stop was quickly touch then real stop was executed at 0.40$ on the 8th of April.
We are out of this trade with a controlled loss of 25%.
Let's move on and focus on our next opportunities.
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