ENJ had a stellar run recently. Between Feb 24, and March 9, it went more than 500%. Now it's looking like it will give it all back.
There could be a good opportunity here to score a 10-20%+ retracement.
First line of support (minor): 1750 sat
Second line of support (major): 1000 sat
Scenario 1:
If it finds support at 0.786, look for a possible breakout from the triangle, and a rebound to the 0.618 fib zone. This would be a 40% retracement, so look to take profits on anything past 10% swing. It could also go sideways a bit, in which case we'll need to extend the triangle out and follow.
Scenario 2:
If it falls through the 0.786 retracement fib, it enters a liquidation zone, where it's likely to fall steeply. Notice how fast it shot up through this same area. In this case, it would likely hit bottom at 1.00 fib zone. It was at the 1000 sat level for quite some time before the recent pump, so I expect this to be a very strong level of support. If it drops this far, same pattern should apply. A descending triangle with potential breakout towards the upside as sell pressure eases.
Caveats:
There could be a good opportunity here to score a 10-20%+ retracement.
First line of support (minor): 1750 sat
Second line of support (major): 1000 sat
Scenario 1:
If it finds support at 0.786, look for a possible breakout from the triangle, and a rebound to the 0.618 fib zone. This would be a 40% retracement, so look to take profits on anything past 10% swing. It could also go sideways a bit, in which case we'll need to extend the triangle out and follow.
Scenario 2:
If it falls through the 0.786 retracement fib, it enters a liquidation zone, where it's likely to fall steeply. Notice how fast it shot up through this same area. In this case, it would likely hit bottom at 1.00 fib zone. It was at the 1000 sat level for quite some time before the recent pump, so I expect this to be a very strong level of support. If it drops this far, same pattern should apply. A descending triangle with potential breakout towards the upside as sell pressure eases.
Caveats:
- Keep in mind levels of support and resistance, including fibs are zones, not exact levels. Be sure to also consider the areas slightly above and below each support and resistance level to create a zone.
- As with all crypto currencies, keep an eye on the kink BTC. Market most often moves in relationship to what it's doing.