Tezos Profit Booked. Retrace Income!
Updated
Traders and hodlers. I hope you guys are stashing away your dollars, cause we have been rolling in the green lately on these Tezzies calls! 7 FOR 7!! Woo. I wouldn't call this next one a "call" but more of a lets see what happens next this go around from booking profits at $3.29 from a $1.35 entry. Boo yah! Go hit the play button on my past calls if you are looking for someone to follow.
So, why did I take profits? If you zoom in on a smaller time frame we can see it start forming a head and shoulder pattern. On the larger time frames, everything was in oversold territory. Once things start going parabolic I try to look for patterns to give me an indication of when we move down.
REMEMBER FOLKS: In this market we aren't trying to PINPOINT tops or bottoms, we are trying to look for indications that things will start to roll over or keep going. This is especially important in a parabolic market. Selling to soon could cost you a lot of potential upside.
Plenty of indicators saying we will get a pullback. but the question is how low do we go? and what do we do once it starts going down? I believe it's quite possible we will see it go down to this $1.80 - $2.25 area. How do you play that if we don't know where the bottom is?! You guessed it! We can LADDER our positions! Starting at $2.25 with buys down to $1.80 so we can get some fills in and gauge if we want to enter more or not if we see some bottoming action around that area.
Ok, so here is what I am doing depending on how fast the market moves down. If we are moving FAST i am going to put a buy right at $1.93 to try to scoop up a spike that goes past $2. If it's slow, I will place ladders.
and wow, tezzies moved down 20 cents since writing.
Cheers,
-Sherem
So, why did I take profits? If you zoom in on a smaller time frame we can see it start forming a head and shoulder pattern. On the larger time frames, everything was in oversold territory. Once things start going parabolic I try to look for patterns to give me an indication of when we move down.
REMEMBER FOLKS: In this market we aren't trying to PINPOINT tops or bottoms, we are trying to look for indications that things will start to roll over or keep going. This is especially important in a parabolic market. Selling to soon could cost you a lot of potential upside.
Plenty of indicators saying we will get a pullback. but the question is how low do we go? and what do we do once it starts going down? I believe it's quite possible we will see it go down to this $1.80 - $2.25 area. How do you play that if we don't know where the bottom is?! You guessed it! We can LADDER our positions! Starting at $2.25 with buys down to $1.80 so we can get some fills in and gauge if we want to enter more or not if we see some bottoming action around that area.
Ok, so here is what I am doing depending on how fast the market moves down. If we are moving FAST i am going to put a buy right at $1.93 to try to scoop up a spike that goes past $2. If it's slow, I will place ladders.
and wow, tezzies moved down 20 cents since writing.
Cheers,
-Sherem
Note
Couple updates here folks. Could Tezos still go down? Answer: Yes. Could Tezos still go up? Sure. But hopefully these charts will give you more clarity as to why I think we are due for a pullback. First glaring reaason is a lot of people that loaded up on tezos from $1 - $1.35 just made a stupid amount of money. I imagine like myself, profit taking is in order.
On to some charts:
If we look at this chart we can see MACD is softening. RSI broke it's trendline to the upside and we saw RSI come down off a lot from here from a very much oversold territory. While Tezos still hasn't broken this steep upward trendline, I am comfortable booking as much profit as I did and waiting to see how it plays out. If i have to enter again at $3.5 or $4. Not a problem. But I want to see how this plays out first.
Note
We can look at some further details on the XTZ/BTC chart. It's important to note that the XTZ/BTC chart on coinbase has fully surpassed the resistance zone of .0003 that acted as support and resistance for so long. This important because it signals a move up, but I also believe that it over shot the resistance and will come back down.Here's how I anticipate it playing out. Of course, this could all change at a moments notice because this is crypto. But I am going to remain on the sidelines for the time being.
Note
FYI - I am only selling my TEZOS right now. I still have 80% of my portfolio in all those other coins I have been posting right now and I am NOT selling those.Note
Trendline has been breached. Note
No surprise here...
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