In my last column I suggested that ethusd would be going higher. If you take a look at the picture I sent in with that column, you can see that at that time, pricetime was at the high point indicated by the red arrow in the picture below. Price was above the 2nd of the 4th arc pair. This is an excellent indication of the way markets can fool you. It becomes clear why it is important to wait for the close above resistance. As you can see, the market reversed after the column was written, and the candle closed below the arc. That was a red flag that caused me to close my position. If you are following me on twitter, then you got my tweet suggesting that it was a good time to take profits.
Even though we since had a couple of closes above the arc, I am not yet convinced the rally has resumed. This could still be the beginning of a larger correction. I say this because the arc is a natural place to stop an advance. The other reason is that the black vertical line looming to the right of pricetime is the end of a smaller setup. The end of a setup is often a time of reversal. I would not buy this market here, and would in fact move my stop losses in very tight.
Just my opinion, of course. But while I had been expecting this to be a great week, it could indeed be a great week, for the bears… Be careful…
ETCUSD and ZECUSD have both hit 5th arcs and end of setups. They look like they might be ready to correct…
Litecoin on the other hand issued a buy signal. I tweeted that last night, when the (circled) price closed above the first arc. Targets are $17.50, and $20, though it would behoove traders to wait for a close above the 1st arc of the 2nd pair at least, before buying here (for reasons discussed above in the paragraph on ethusd).
Remember: The author is a trader who is subject to all manner of error in judgment. Do your own research, and be prepared to take full responsibility for your own trades.
Our Social Networks: Facebook Instagram Pinterest Reddit Telegram Twitter Youtube
