BNB trade set up ideaWeekly time frame analysis
BINANCE:BNBUSDT was one of the best performers of the last bull run.
BNB retained its value relatively well ("only" -70% from ATH) during the bear market and formed a clear support zone around the 200$ mark from which it seems to currently be bouncing back to initiate the next impulse.
The Bollinger bands are very contracted and flat, announcing a strong potential move.
Daily time frame
After a steep decline in June 2023, BNB is constructing a reversal Head and Shoulders pattern on a strong multi-year support zone. Volumes confirm the psychological construct of this trend reversal pattern.
Strategy
Buying on a daily close above 235$
Objective 1: Head and Shoulders neckline at 261$ (+12%)
Objective 2: Top of the range at 336$ (+45%)
Objective 3: ATH at 665$ (+190%)
Invalidation
Mental Stop: below the shoulder at 220$
If prices retrace to this level we will wait for the daily closing price then set a Stop loss ¼ or Risk below the daily close price.
Risk = Distance between Mental stop and entry point.