Maybe an early punt but NOT quite a SHORT set up YET
A short as high above $34k as possible i.e. +34.4 (stop above last high $35k, target above
31K
for about 2:1 R/R, rolling the dice at 50/50 chance hit rate) may be worth it as an early punt that I see myself would do in 2017
However
Hence it’s not quite a short set up yet
Overall, it’s a level to watch, but I’m not taking any position
31K
for about 2:1 R/R, rolling the dice at 50/50 chance hit rate) may be worth it as an early punt that I see myself would do in 2017 However
- Daily RSI is still in overbought (81.8 over 76.26), not yet showing divergence and can be overextended for as long as 20 days (reference on 11Jan23 to 30Jan23)
- Daily MACD is way above signal line with no sight of crossing
- Also a price retracement into the blue zone at 0.5 Fibanocci may be a stretch so R/R may not be that good.
Hence it’s not quite a short set up yet
Overall, it’s a level to watch, but I’m not taking any position
As noted, price can stay overextended for quite some time. Chart does not look good now for a short (to be updated in this week #3 newsletter