🔑THETA: Shorting Chance in Midweek Dip🩸
🔍Today, being Thursday, presents a favorable opportunity for opening positions as we analyze THETA to anticipate its trend and future movement.On the 4-hour timeframe, after a prolonged uptrend, THETA has reached resistance at $3.574 and is currently undergoing a correction. Closer examination reveals price consolidation in the second leg of the decline, with a bounce off support at $2.498, indicated by a green candle. It remains to be seen whether this level will hold or further decline will ensue.
📉If $2.498 support is breached, a short position could be initiated, with Fibonacci retracement levels serving as potential targets, as explained below.
đź’ŽRegarding indicators, the SMA25 is slightly lagging behind the price, suggesting potential price waiting for it to catch up, while the RSI exhibits divergence with two lows, necessitating patience for confirmation before considering a short position. Confirmation for short positions can be sought if the $37.47 level is breached.
âś…The Fibonacci retracement drawn from the daily timeframe represents the higher wave cycle, indicating the current correction of the HWC. Therefore, sudden sharp upward movements in price are always possible.
đź“ŠVolume has diminished after reaching the $3.576 resistance, currently exhibiting range-bound behavior without providing clear directional cues.
🧠💼It's important to acknowledge the inherent risks in futures trading, with the potential for margin calls if risk management is neglected. Always adhere to strict capital management principles and utilize stop-loss orders, ensuring that the initial target offers a risk-to-reward ratio of 2
📉If $2.498 support is breached, a short position could be initiated, with Fibonacci retracement levels serving as potential targets, as explained below.
đź’ŽRegarding indicators, the SMA25 is slightly lagging behind the price, suggesting potential price waiting for it to catch up, while the RSI exhibits divergence with two lows, necessitating patience for confirmation before considering a short position. Confirmation for short positions can be sought if the $37.47 level is breached.
âś…The Fibonacci retracement drawn from the daily timeframe represents the higher wave cycle, indicating the current correction of the HWC. Therefore, sudden sharp upward movements in price are always possible.
đź“ŠVolume has diminished after reaching the $3.576 resistance, currently exhibiting range-bound behavior without providing clear directional cues.
🧠💼It's important to acknowledge the inherent risks in futures trading, with the potential for margin calls if risk management is neglected. Always adhere to strict capital management principles and utilize stop-loss orders, ensuring that the initial target offers a risk-to-reward ratio of 2
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