Incoming Trend Reversal Confirmation
Zooming in on the Daily chart to 2 and 4 hours, Mana broke out of the descending wedge and retested the bottom of the ascending channel, attempting a reversal in trend. Should it break through $2.96, there is nothing keeping it from entering the mid $3.20's for the first time in 10 days. Depending upon volume, there is always minor resistance at the middle of the ascending channel that sometimes sends it back down to the support before heading up. Volume is still low, any increases as of late have simply been a small number of people shorting the small bumps, which is totally fine (I do it because trend reversals need to set up first to have a meaningful move higher and is oftentimes more predictable). You'll notice that when it simply bounces, w/o a set up like on January 5-6 (28% in 16 hours) it gets rejected just as hard in the following day(s). But, this was an indicator that a trend reversal was inbound and that's where we are at, looking for a confirmation of the break-out in the coming hours. These are just the ideas that I am reading on the short-term chart and not financial advice. The MACD is not looking fantastic. Mana is back at the baseline of the Stoch RSI, supporting another attempt at moving higher...or at least not moving much lower. What we don't want to see is a close below $2.90 as that could lead to a short-term test of $2.50 area. The long weekend is coming to an end and I anticipate some higher volumes tonight and into tomorrow. As always, keep an eye on the Fed. news, BTC movement, and how Wall Street is trending. Keep a stop loss...still very volatile. Mine are a little loose right now because volatility goes both ways. Good luck.
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.