In this morning’s analysis, we set up against the action seen over the weekend in the bitcoin price, and looked to get in on any volatility. We noted that the labor day momentum would probably be a little weak based on the volume limiting Labor day, and that this could limit our aggression when we get in and out of any speculative moves.
As things turned out, we did get a couple of breaks, but didn’t manage to get towards our targets. Unfortunately, we fell foul of the momentum issues we highlighted in this morning’s analysis. Price broke through our predefined support level shortly after we put forward our key levels, and it looked as though we were heading for a nice quick turnaround target to the downside. Our take profit was placed at 605, and we got in short on the break of support. Price ran down to within one dollar of our target, but then reversed, and moved up slightly before trading sideways for the remainder of the afternoon’s session. The break has given us an alternative range to go at this evening, but that’s about it. Our trade got out for a small loss, and we head into this evening’s session net flat on the markets.
So, with that in mind, let’s take a look at what we are going for in this evening’s session. Take a look at the chart below to get an idea of what’s on. The chart is a fifteen-minute candlestick chart showing the day’s action, with each candle representing five minutes’ worth of movement in price.
As the chart shows, we are looking at in term support to the downside at 605 flat, and in term resistance to the upside at 615.
We are going to get in long towards 620 if price breaks through resistance, and short towards 600 flat if price breaks support. A stop just the other side of the entry on both counts defines risk nicely.
Charts courtesy of SimpleFX
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