Swing trade in 4H
Daily MACD is still deep in the bear zone and Solana hasn't even claimed the the previous week high. Therefore, the overall sentiment for Solana is still bearish to me, however, in the 4H chart, I can see some bullish momentum is building up and a potential swing opportunity might be coming up soon. The things I am seeing for a potential swing trade are as follows:
1) The price broke and closed above the descending treandline and now the price is consolidating (not dropping) in the range bound in the Fib 0.236 region.
2). When the price tries to move to the upside, the first barrier that it has to break is Fib 0.236. It doesn't guarantee it is the start of the bull, but it is the early sign of the bullish momentum. If the momentum is weak, the price starts to retrace to the downside when it hits 0.382 and 0.5. So, I need to wait and see the sideway consolidation ends and the price moves decisively (without a long top wick) above $203.
3) MACD needs to be properly crossed, point to the upside and enter the bull zone.
As I said, daily MACD is still in the bear zone. Therefore, 4H chart provides a good trade set up for a long, the upside momentum might be still limited to the Fib 0.5 -0.618 area. Therefore, if I open a long position based on 4H chart, I will be very cautious with position size and profit target.
