UXLINK - Is a Reversal Imminent? SHORT SETUPUXLINK has seen impressive gains over the past 7 days, rising +140% and approaching the swing high at $1.208. This price action suggests the possibility of a correction, providing an attractive short opportunity if it faces rejection at these levels.
Key Observations:
Recent Bullish Momentum: UXLINK has been on a 7-day bullish run, rising significantly, which increases the likelihood of a short-term pullback or correction.
Swing High at $1.208: As UXLINK nears the swing high at $1.208, this could act as a potential rejection point. A rejection here could provide an excellent shorting opportunity.
Riskier Trade: If you prefer a more aggressive position, a short could be taken now, targeting the swing high with a laddered approach towards that level.
Possible Correction Ahead: With 7 consecutive bullish days, a correction is likely in the near future. The dOpen at $1 serves as a strong support level to target for a short.
Break Below $1: If UXLINK breaks below the $1 level, the next target becomes the wOpen at $0.8645.
Reward-to-Risk Potential:
Target 1: $1 (dOpen) offers a 4:1 risk-to-reward, with a potential 16.45% gain.
Target 2: $0.8645 (wOpen) offers a 7:1 risk-to-reward, with a possible +28.5% gain.
Elliot Wave Count: According to Elliot wave theory, UXLINK is approaching the completion of its 5-wave structure, which may further indicate that the upward trend is nearing exhaustion.
Summary:
Bullish run over the past 7 days makes UXLINK susceptible to a correction.
Swing high at $1.208 could provide an ideal short opportunity, with strong targets at $1 and $0.8645.
Reward-to-risk ratios are favorable, offering 4:1 or even 7:1 if the trade is executed properly.
Elliot Wave suggests the end of the current upward movement, further supporting the case for a potential short.
