FTM → Fantom Above to Rush Downward Toward $0.29!? Let's Answer.Fantom has pulled back from its $0.46 high and closing the gap to the 30EMA. Are we about to fall through the EMA ribbons back down in the $0.20-$0.30 range?
How do we trade this? 🤔
Fantom is still in the bull channel, but has a few datapoints working against it. First, there have been three pushes up in the bull channel, a typical number of legs in a trend before the risk of trend change can become greater than the continuation. We also have an RSI at 57.00 and below the Moving Average, a weak indicator on its own, but supports the idea of a pullback or trend change.
The final piece to the puzzle is a retest of the $0.40 area after a fall to the Daily 30EMA. A strong bear candle closing on or near its low should give us enough probability to take a 1:1.5 short playing the reversal.
Until then, we should wait on the sidelines for more price action to confirm!
💡 Trade Ideas 💡
Short Entry: $0.400
🟥 Stop Loss: $0.470
✅ Take Profit: $0.295
⚖️ Risk/Reward Ratio: 1:1.5
🔑 Key Takeaways 🔑
1. Bull Channel, Bias to Long.
2. Three Pushes Up, Potential to Change Trend.
3. Gap from 30EMA and 200EMA Support.
4. RSI at 57.00 and below Moving Average, Bias to Short.
5. Watch for Bitcoin Trend Change at $46,000.
💰 Trading Tip 💰
The RSI is a weak indicator on its own. Coupled with price action analysis, it often complete the picture necessary to make a trade decision.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
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