SEI → Bull Breakout and Beyond? Another Bull Run imminent!?SEI rose over 300% from December 18th to January 3rd, breaking out of the newly established bull channel. Now SEI has found support on top of the bull channel and is showing signs of going higher, is it time to long?
How do we trade this? 🤔
We have three points of contact with the bull channel resistance line now acting as support. While SEI is *very* bullish, we need to be careful as the crypto market threatens to go into a pullback which could hinder the SEI price. We should wait for a pullback toward the Bull Channel top and look for a buy signal and confirmation to enter a long. Then it's reasonable to enter a 1:2 Risk/Reward Ratio long.
Until then, let's wait on the sidelines for more price action and confirmation so the probability of profit is higher.
💡 Trade Idea 💡
Long Entry: $0.775
🟥 Stop Loss: $0.5825
✅ Take Profit #1: $1.16
⚖️ Risk/Reward Ratio: 1:2
🔑 Key Takeaways 🔑
1. Strong bull run with two strong legs up
2. Three points of contact with bull channel top
3. Price remains above Daily 30EMA
4. RSI is high and below the moving average, supporting a pullback.
5. Bitcoin Showing Strong Reversal Signals, Impacts Market Sentiment.
💰 Trading Tip 💰
Reversal trading is inherently low probability because you're betting against the trend. The tradeoff is your reward will be much higher if you swing trade it. This kind of trade is the inverse of trend trading, where the probability is higher but the reward is lower.
⚠️ 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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