WIF (dogwifhat): Approaching Support
Trade setup: Price broke above $2.00 resistance and through the down trendline (see blue line in chart) and made a Higher High - meaning, price broke above prior swing high of $2.37. Higher Lows and Higher Highs are signs of Uptrend. We would be buyers on pullback to $1.50 support, which held up a few times in recent months. Price could revisit $3.50 next for +40% potential upside. Stop Loss at $1.30.
Pattern: Price is Approaching Support, which is a level where it could pause or reverse its recent decline, at least temporarily. Support is often a level where price has bounced up in the past, or potentially prior Resistance level that was broken. (concept known as polarity). Once price breaks below support, it can move lower to the next support level. Learn to trade key levels in Lesson 7.
Trend: Short-term trend is Strong Down, Medium-term trend is Neutral and Long-term trend is Down.
Momentum: Price is neither overbought nor oversold currently, based on RSI-14 levels (RSI > 30 and RSI < 70).
Support and Resistance: Nearest Support Zone is $1.50. Nearest Resistance Zone is $2.00, then $3.50.
Pattern: Price is Approaching Support, which is a level where it could pause or reverse its recent decline, at least temporarily. Support is often a level where price has bounced up in the past, or potentially prior Resistance level that was broken. (concept known as polarity). Once price breaks below support, it can move lower to the next support level. Learn to trade key levels in Lesson 7.
Trend: Short-term trend is Strong Down, Medium-term trend is Neutral and Long-term trend is Down.
Momentum: Price is neither overbought nor oversold currently, based on RSI-14 levels (RSI > 30 and RSI < 70).
Support and Resistance: Nearest Support Zone is $1.50. Nearest Resistance Zone is $2.00, then $3.50.
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