So it looks like we are finally getting a return to the overarching bullish momentum that took us to trade just shy of $500 towards the end of last year. It’s been a rocky month or so, with the bitcoin price hitting lows not seen in a long time, but with any luck things are back on the up and we can start to see a shift in sentiment.
In yesterday’s analyses we noted that we expected a sharp move as the US markets reopened and joined forces with Asian volume. We didn’t know what direction that move might be in, but it didn’t matter too much from a short term, intraday perspective. Obviously long term holdings benefit from an uptick – but this is a multidirectional intraday strategy, so it doesn’t really matter where things move, so long as they move!
As we head into today’s session, we’d like to see a little bit more strength to carve out a definitive high. We can then use this high as in term support. For now, and until this high becomes clear, we’re going to just stick with the most recent – albeit flimsy – swing high, and if we get a break, so be it.
So, with this in mind, where are we looking to get in and out of the markets on today’s action? Take a quick look at the chart to get an idea of what we’re watching.
As the chart shows, today’s range is defined by in term support at 407.73 and in term resistance at the aforementioned intraday high of 414.67.
First to the upside (as it’s looking more likely). If we get a break above resistance, we will watch for a close above the level to put us long towards 420 flat. Stop at 412 flat.
Downside, a close below support will signal a short trade back towards 400 flat. Again, a stop around 410 keeps things tight on the risk side of things.
Charts courtesy of Trading View