Pendle Long Position Thesis
Emotion & Narrative:
Pendle has experienced a ~50% correction, presenting a strong entry opportunity. I believe Real-World Assets (RWA) will be a key narrative in the upcoming bull cycle, and Pendle is well-positioned to benefit from this trend.
Risk Management:
Entry: $3
Stop Loss: $2.46 (below the long-term trendline from January 2024)
Risk-to-Reward Ratio: 12
Take Profit: $9.8 (just below the psychological resistance at $10)
Leverage:
No leverage on this trade. The potential upside is substantial, and I prefer to minimize unnecessary risk.
Technical Analysis:
Support Bounce: Pendle has rebounded off a key support level on the weekly timeframe.
RSI Divergence: Hidden bullish RSI divergence is visible on the weekly chart.
Stoch RSI: Currently in oversold territory on the weekly timeframe.
MACD: Showing early signs of recovery this week (not yet confirmed).
Inverse Head & Shoulders: If Pendle reaches ~$7, it would confirm a bullish inverse Head and Shoulders pattern, with a projected target of $12. I plan to take out 80-90% of my position before this level to front-run the market.
Bearish View: Pendle remains in a downtrend and must close above $3.75 to confirm a trend reversal. If this happens, I will deploy more capital into the trade.
Emotion & Narrative:
Pendle has experienced a ~50% correction, presenting a strong entry opportunity. I believe Real-World Assets (RWA) will be a key narrative in the upcoming bull cycle, and Pendle is well-positioned to benefit from this trend.
Risk Management:
Entry: $3
Stop Loss: $2.46 (below the long-term trendline from January 2024)
Risk-to-Reward Ratio: 12
Take Profit: $9.8 (just below the psychological resistance at $10)
Leverage:
No leverage on this trade. The potential upside is substantial, and I prefer to minimize unnecessary risk.
Technical Analysis:
Support Bounce: Pendle has rebounded off a key support level on the weekly timeframe.
RSI Divergence: Hidden bullish RSI divergence is visible on the weekly chart.
Stoch RSI: Currently in oversold territory on the weekly timeframe.
MACD: Showing early signs of recovery this week (not yet confirmed).
Inverse Head & Shoulders: If Pendle reaches ~$7, it would confirm a bullish inverse Head and Shoulders pattern, with a projected target of $12. I plan to take out 80-90% of my position before this level to front-run the market.
Bearish View: Pendle remains in a downtrend and must close above $3.75 to confirm a trend reversal. If this happens, I will deploy more capital into the trade.
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.
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.