Short term play for $WTC ABC could turn into 1-5
Our trader group is focussing on short term plays in alts these weeks.
The bigger picture is a downtrend and doing some bounces right now which still give very nice profits. Because of this downtrend, we look at ABC moves who might eventually turn into 1-5 cycles. For now ABC as a correction in the bigger downtrend.
Strong advice to play these moves cautiously, the past months have shown how important Risk Management is.
For WTC we are looking for a completion of this ABC towards the red box. Once red box is reached (top of downtrend channel), we will check the moves to see if it is a correction or the start of impulsive moves down.
Looking at the daily we see a nice bounce from the green zone and a bounce of the red horizontal level but I think we will crack that level.
On 240 the ABC is shown.
On the 1hr you can see it broke out from the earlier correction which formed the bigger B leg.
It started moving up, followed by another correction (in a bullish pattern). It just broke out of that pattern, indicating next leg up has started.
As usual after such a Break Out you can expect a little pullback (retest) and thats where you should look for an entry. Once retested and moving up again, you can enter the trade, aiming for a 25-30% profit which is not ground breaking in crypto but in these market conditions a nice play.
More info about break out trading in the link below.
The bigger picture is a downtrend and doing some bounces right now which still give very nice profits. Because of this downtrend, we look at ABC moves who might eventually turn into 1-5 cycles. For now ABC as a correction in the bigger downtrend.
Strong advice to play these moves cautiously, the past months have shown how important Risk Management is.
For WTC we are looking for a completion of this ABC towards the red box. Once red box is reached (top of downtrend channel), we will check the moves to see if it is a correction or the start of impulsive moves down.
Looking at the daily we see a nice bounce from the green zone and a bounce of the red horizontal level but I think we will crack that level.
On 240 the ABC is shown.
On the 1hr you can see it broke out from the earlier correction which formed the bigger B leg.
It started moving up, followed by another correction (in a bullish pattern). It just broke out of that pattern, indicating next leg up has started.
As usual after such a Break Out you can expect a little pullback (retest) and thats where you should look for an entry. Once retested and moving up again, you can enter the trade, aiming for a 25-30% profit which is not ground breaking in crypto but in these market conditions a nice play.
More info about break out trading in the link below.
Related publications
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.