Sushi Breaking Above Downtrending Resistance Line. Will It Hold?Hi all, wishing everyone lots of happiness and love!
Sushi has been in a daily downtrend since the 9th of November. However, it has now broken above the downtrending resistance line on the 4hr chart, which has been suppressing price as shown in the image. The price is pulling back toward the resistance line. If price comes back and HOLDS it as support, this will be a great low risk set up to use that line as your support and stop loss area if you decide to long.
Firstly, there is some bullish divergence forming on the 4hr timeframe. The MACD is forming higher lows, while price was making lower lows. There was also some nice increasing bull volume on the breakout which we certainly want to see for a sustained upward move. The daily chart is also oversold on the RSI providing another juicy reason to long. Both the Stoch RSI is trending upward and the MACD is about to cross bullish on the daily timeframe. I will be waiting for the resistance line to turn into support before initiating a long position. Hopefully the bear volume subsides on the pullback which will be another clue. My take profit will be just under the daily downtrending resistance line that has formed at around ~$11.
The key is to be patient and let the trades come to you as you hypothesise and envision them, otherwise the market will eat you up whole with no mercy! Good luck!
