TWT → A Massive Long Opportunity! Let's Max Your Profits.
Updated
Trust Wallet Token is currently attempting to break its bear channel resistance after a nice Head and Shoulders reversal pattern! My last analysis only got us a 1:1 Risk Reward on a short before the right shoulder began to show itself. Now we should be looking for long entries.
How do we trade this?
We have a descending bear channel arcing to the upside after a strong bull run, a head and shoulders reversal pattern, bear capitulation candle (end of trend signal), RSI above the Moving average, what more can a bull want!?
Specifically, another small pullback and for the RSI to come down a bit. The price is currently at resistance and has printed two 4HR doji (trading range, "indecision") candles prior to this one, not a sign of bull strength. I would wait for a small pullback to the EMAs and look for a strong bull signal and confirmation bar to long. Preferably, wait for a break of resistance and a test to confirm support, then place a protective stop below the 30EMA and 200EMA. Your profit target could be many, I would personally take half profits at 1:1 Risk/Reward ($1.36), move your stop loss up to your entry, and then swing the rest until you get a reversal signal.
The crypto market has been burning hot for the bulls, but always be on the lookout for a reversal signal!
Trade Idea
Long Entry: $1.25
Stop Loss: $1.14
Take Profit: $1.69
Risk/Reward Ratio: 1:4
Key Takeaways
1. Head and Shoulders Reversal Pattern, Bias to Long.
2. Capitulation Bear Candle, End of Trend Signal.
3. At Channel Resistance, wait for pullback to EMA Ribbons.
4. Look for Strong Bull Signal and Confirmation Candle to Long.
5. RSI at 67.00, Supports Waiting for a Pullback.
You are solely responsible for your trades, trade at your own risk!
If you found this analysis helpful, click the Boost button and let us know what you think in the comment section below!
How do we trade this?
We have a descending bear channel arcing to the upside after a strong bull run, a head and shoulders reversal pattern, bear capitulation candle (end of trend signal), RSI above the Moving average, what more can a bull want!?
Specifically, another small pullback and for the RSI to come down a bit. The price is currently at resistance and has printed two 4HR doji (trading range, "indecision") candles prior to this one, not a sign of bull strength. I would wait for a small pullback to the EMAs and look for a strong bull signal and confirmation bar to long. Preferably, wait for a break of resistance and a test to confirm support, then place a protective stop below the 30EMA and 200EMA. Your profit target could be many, I would personally take half profits at 1:1 Risk/Reward ($1.36), move your stop loss up to your entry, and then swing the rest until you get a reversal signal.
The crypto market has been burning hot for the bulls, but always be on the lookout for a reversal signal!
Trade Idea
Long Entry: $1.25
Stop Loss: $1.14
Take Profit: $1.69
Risk/Reward Ratio: 1:4
Key Takeaways
1. Head and Shoulders Reversal Pattern, Bias to Long.
2. Capitulation Bear Candle, End of Trend Signal.
3. At Channel Resistance, wait for pullback to EMA Ribbons.
4. Look for Strong Bull Signal and Confirmation Candle to Long.
5. RSI at 67.00, Supports Waiting for a Pullback.
You are solely responsible for your trades, trade at your own risk!
If you found this analysis helpful, click the Boost button and let us know what you think in the comment section below!
Note
TWT has delivered a nice bull confirmation candle on the 30EMA! We need one more good sign of support on the 30EMA to hit our first Take Profit of $1.36. Still recommend swinging the rest toward $1.69 at 1:3 Risk/Reward after moving your Stop Loss up to your entry price.
More updates to come as they unfold!
Note
TWT did not deliver us the support or confirmation candles we needed at the 30EMA! Or the 200EMA for that matter! This trade never became an option and thus, we remain on the sidelines.
We need to watch this price area. The bears are failing to get the price down, and we still have plenty of upside on the RSI. Statistically the longer sideways price action goes, the greater chance the price will reverse (which in this case, is reverse to the upside from the $1.82 pullback!). We ought to remain bullish until we see some sell signals and confirmation candles to change our bias.
A fresh TWT analysis will be coming soon!
Note
TWT has been continuing the march sideways in its month-long trading range, leaving us with less hope that a successful breakout to the upside will occur.
The price action isn't giving us enough information to enter a trade on the Daily timeframe. In this scenario, you should be watching the 15m chart and looking for longs at the bottom of the trading range ($1.10) and scalping profits near the top ($1.20).
Looking at the lifetime of TWT, our bias ought to be long. A breakout below the trading range is a long-term buy opportunity. We need to watch Bitcoins next move as we near $46,000, a crucial point in Bitcoins market cycle and the crypto market as a whole. If TWT does not get a boost outside of the trading range in the next week or two, the probability that the price will fall increases.
Bitcoin Lifetime Analysis:
-Joe Dean
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