1INCH - Short TF potential move & retest targets
1INCH followed the market with a big sell off. initially having a fakeout to the upside of a near symmetrical triangle to then drop 30% below the bottom of it. Now forming 3 HLs on the hourly, the RSI is on the move upwards above the signal line. An entry on the retest of the signal line would allow for a 40% target to the tip of the symmetrical triangle which coincides with Januarys VWAP end price.
On a larger time frame, should the January VWAP flip into support, the next target would be the December VWAP, sitting at 2.81, which coincides with the 50% point of the July to September rally. the 0.618 fib level above this is 3.09, with the golden pocket at 5.20-5.49.
These targets face resistance levels on the way, but with the option of a tight stop loss of 3.5% below the first HL set a few days ago. This offers the potential for a very good risk-reward ratio.
Target 1 - 2.17
Risk/Reward = 10:1
Target 2 - 2.83
Risk/Reward = 20:1
Target 3 - 5.22
Risk/Reward = 60:1
On a larger time frame, should the January VWAP flip into support, the next target would be the December VWAP, sitting at 2.81, which coincides with the 50% point of the July to September rally. the 0.618 fib level above this is 3.09, with the golden pocket at 5.20-5.49.
These targets face resistance levels on the way, but with the option of a tight stop loss of 3.5% below the first HL set a few days ago. This offers the potential for a very good risk-reward ratio.
Target 1 - 2.17
Risk/Reward = 10:1
Target 2 - 2.83
Risk/Reward = 20:1
Target 3 - 5.22
Risk/Reward = 60:1