Good chance to ride waves of retracement!? HUGE momentum abuse! Hey tradomancias,
I bet no one out here did not see that huge sell-off on friday.
Congrats to all of you who participated or is swinging this asset.
We just see a huge momentum without any resistance in the way but some profit-safes that day shown by the doji of the last D1-Candle.
What will happen? We don`t know, but I guess we can assume that nobody is willing to buy at this point.
There is two scenarios that I could imagine:
1. We build a flag, consolidate and continue the joruney to the moon.
2. (my favourite)
We see profit-safes whose movements will trigger tight placed stop-loss-levels close the the current price or the next fibonacci-retracement. We`ll probably see a domino-effect causing the market to drop down to the recent resistance-level / fibonacci-levels.
Why am I saying that?
As a bull and TA, it`s pretty hard to find a decent stop-loss at this point. There is no confirmed support-level close to the current price which offers good prices to place your stop-loss unless you are ready to lose a lot profit you`ve made with this crazy momentum. Either you take the risk to loose a lot of profit or you just place a random stop-loss close the current price. As a predator waiting for a good chance to follow that momentum you might wait right now. The prey is faaaaaar away and it`s way to risky to engage at this point. So you`ll probably wait until the market relaxes/consolidates or drops down to a confirmed support level that "guarantees" safity as a part of your strategie.
Otherwise you just gamble...
Good chance to sell? SL at ATH? Might be worth a try.
My experience: The market totally overreacts with emotions and had two days to overthink all decisions it has made. I expect the market to drop and safe profits a bit until we find new bulls buying at decenbt price-levels.
Or news/ fundamental information will destroy my idea! =)
Cheers and good trades my friends =)
