FTM → Blast Off to $0.40!? Or Rejected to $0.20? Let's Answer.
Updated
Fantom continues its bullish blast bouncing hard off of the 4HR 200EMA ribbon and then the 30EMA. We're now closing in on Resistance Zone #1 and need to know what the next trade move will be.
How do we trade this? 🤔
We're too close to the resistance zone to long and we don't yet have any indication that the price will reverse. Best to wait on the sidelines until 1 of 2 outcomes unfold:
1. Rejection at Resistance #1: Strong bear signal and confirmation bars closing on or near their lows. Short scalp a 1:1 with half of your position then swing the to 1:2. You could also swing until you see a reversal bar to the upside.
2. Breakout of Resistance #1: Wait for Resistance #1 to be broken and tested as support. Long that support and sell half your position at a 1:1 Risk/Reward Ratio then the rest at 1:3 or if the price fails at Resistance #2.
💡 Trade Ideas 💡
Long Entry: $0.355
🟥 Stop Loss: $0.345
✅ Take Profit #1: $0.365
✅ Take Profit #2: $0.385
⚖️ Risk/Reward Ratio: 1:3
Short Entry: $0.335
🟥 Stop Loss: $0.344
✅ Take Profit #1: $0.326
✅ Take Profit #2: $0.317
⚖️ Risk/Reward Ratio: 1:2
🔑 Key Takeaways 🔑
1. Bullish Macro Trend, Bias to Long!
2. Strong Support at 200EMA, Bias to Long.
3. Coming up on Resistance Zone #1, Wait to Enter.
4. If Rejected at Resistance #1, Short Scalp.
5. If Break Resistance #1, Long Support.
6. RSI at 63.00 and above Moving Average, Bias to Long.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
Like 👍 and comment if you found this analysis useful!
How do we trade this? 🤔
We're too close to the resistance zone to long and we don't yet have any indication that the price will reverse. Best to wait on the sidelines until 1 of 2 outcomes unfold:
1. Rejection at Resistance #1: Strong bear signal and confirmation bars closing on or near their lows. Short scalp a 1:1 with half of your position then swing the to 1:2. You could also swing until you see a reversal bar to the upside.
2. Breakout of Resistance #1: Wait for Resistance #1 to be broken and tested as support. Long that support and sell half your position at a 1:1 Risk/Reward Ratio then the rest at 1:3 or if the price fails at Resistance #2.
💡 Trade Ideas 💡
Long Entry: $0.355
🟥 Stop Loss: $0.345
✅ Take Profit #1: $0.365
✅ Take Profit #2: $0.385
⚖️ Risk/Reward Ratio: 1:3
Short Entry: $0.335
🟥 Stop Loss: $0.344
✅ Take Profit #1: $0.326
✅ Take Profit #2: $0.317
⚖️ Risk/Reward Ratio: 1:2
🔑 Key Takeaways 🔑
1. Bullish Macro Trend, Bias to Long!
2. Strong Support at 200EMA, Bias to Long.
3. Coming up on Resistance Zone #1, Wait to Enter.
4. If Rejected at Resistance #1, Short Scalp.
5. If Break Resistance #1, Long Support.
6. RSI at 63.00 and above Moving Average, Bias to Long.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
Like 👍 and comment if you found this analysis useful!
Note
We had a nice strong 1HR bull candle into Resistance Zone #1 followed by a solid sell off back below the zone. The current 4HR candle has a long wick on it, but we still have 1hr and 20 minutes before it closes. Remember, do not trade a candle until its closed!If the price closes below resistance, we need to see what kind of follow through candle we get before entertaining the idea of a short. This price action still looks bullish so we need to see more candles before making trade decisions.
More updates to come as they unfold!
Note
FTM has touched the top of Resistance Zone #1 at $0.348! To support our proposed long opportunity, we need to break the $0.348 price and retest Resistance Zone #1 as Support. Once we see a bull signal candle and confirmation closing on or near its high, gives us the probability we need to long.More updates to come as they unfold! Let me know what you think in the comment section.
Note
The Resistance Zone was broken and established as new Support! That last bull candle near the new Support Zone, after a series of failed attempts to break down, gave us the probability we needed to enter a long. If you longed according to my analysis, you could have already taken half profits at 1:1 Risk/Reward. The latter half of your position is justified to swing to 1:3 Risk/Reward or until you see a reversal play out.
A fresh Fantom analysis will be coming soon!
-Joe Dean
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