BCH/USD, 1h, two spots to buy pullbacks2 days ago, BCH settled into to a small corrective structure (large red rectangle). As things played out, a well-defined resistance level became apparent and buyers kept buying in at relatively higher prices (red trend line).
Towards the end, an even smaller corrective structure formed and I was able to buy in with a limit order after price broke above and pulled back to it. This entry (at $1350) allowed me to set a tight stop and catch the breakout of the larger corrective structure. So far, I am up 5Rs (probably less by the time I finish writing this) but I think this trade could run so at this point I plan to hang on as a retest of the highs would be about a 14R trade.
This could play out a few ways:
Best case, BCH breaks resistance @ 1430, perhaps pulls back to retest, and continues on. A retest would be a good spot to have an order waiting. I will move my stop up after a solid break of this level.
Another possibility is that resistance at 1430 stops price and sends it back to retest 1370--this is strong support and would be a solid place to buy a pullback. Since my stop is already at break even, I will likely place another limit order here just in case.
If 1370 breaks on this timeframe that will a pretty good sign that the bears are back in control.
