Cardano: How to Trade Below 0.14000 Resistance
The previous trading idea for this market is active. The trade is profitable, and we can fix at least the part of the profit. I wrote about a possible buying opportunity in this post. Please, read it as well in order to understand what I'm talking about.
What should you do if you missed that buy signal? Let's look at the daily chart. It will provide us some ideas.
The price is not far from a strong resistance level. We can see how buyers failed at 0.14000 with the attempts to push the price higher. Probably this time we will see the same reversal and a pullback. Maybe you think that we can use a breakout for opening long positions. I don't think it is a good idea. The price is far from SMAs, and it is a signal that the market is stretched. Buying above 0.14000, we have amazing chances to catch a deep drawdown.
I would prefer to wait for a reversal from 0.14000 resistance, the breakout below the local uptrend line and a pullback to a support zone formed by SMA50 and 0.10000 support level. The price will correct the previous upward movement, and we will buy after the correction from the strong support. I think it makes sense as we will have a good opportunity to join the uptrend after the correction, and the market will have the space for the upward movement. Stop orders for long positions must be placed below the support zone and the local swing low. The same setup should be used if the price moves below 0.10000 support zone. SMA100 will be able to provide us a good buying opportunity as well.
Thanks for your attention! If you like this post, please, support it by clicking the LIKE button. If you think I'm wrong, share your ideas in the comments!
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
What should you do if you missed that buy signal? Let's look at the daily chart. It will provide us some ideas.
The price is not far from a strong resistance level. We can see how buyers failed at 0.14000 with the attempts to push the price higher. Probably this time we will see the same reversal and a pullback. Maybe you think that we can use a breakout for opening long positions. I don't think it is a good idea. The price is far from SMAs, and it is a signal that the market is stretched. Buying above 0.14000, we have amazing chances to catch a deep drawdown.
I would prefer to wait for a reversal from 0.14000 resistance, the breakout below the local uptrend line and a pullback to a support zone formed by SMA50 and 0.10000 support level. The price will correct the previous upward movement, and we will buy after the correction from the strong support. I think it makes sense as we will have a good opportunity to join the uptrend after the correction, and the market will have the space for the upward movement. Stop orders for long positions must be placed below the support zone and the local swing low. The same setup should be used if the price moves below 0.10000 support zone. SMA100 will be able to provide us a good buying opportunity as well.
Thanks for your attention! If you like this post, please, support it by clicking the LIKE button. If you think I'm wrong, share your ideas in the comments!
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
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