ETH Potential Descending Channel?
So now that we have had a nice move down as expected retraces of these moves are underway.
Being we have officially broken our long running macro up trends and have lower highs and lower lows we are now officially in a downtrend. Just like every uptrend has several pullbacks / retraces along the way a down trend is no different. The question is when will the down trend end and most importantly how high will the upward retrace go for a current long position and where will it potentially end to re-enter to the short side.
If we are expecting a push up with out braking our previous highs there are a few things we can look at to form areas of confluence for a long postion target and reversal to the short side.
This is a Daily line chart only considering the close prices each day and drawing a simple trend line across the last two highs provides a first point of serious time based resistance.
Looking at the golden pocket retrace area of our local high and local low we have a likely distribution area of 1758-1781.
There is some horizontal resistance in the 1700-1725 for a potential reversal but hopefully a small pull back.
Being we are in a macro down trend as price gets closer to the down trend line at what ever price level it reaches it a short trade should certainly be in order.
Trade Well.......
Being we have officially broken our long running macro up trends and have lower highs and lower lows we are now officially in a downtrend. Just like every uptrend has several pullbacks / retraces along the way a down trend is no different. The question is when will the down trend end and most importantly how high will the upward retrace go for a current long position and where will it potentially end to re-enter to the short side.
If we are expecting a push up with out braking our previous highs there are a few things we can look at to form areas of confluence for a long postion target and reversal to the short side.
This is a Daily line chart only considering the close prices each day and drawing a simple trend line across the last two highs provides a first point of serious time based resistance.
Looking at the golden pocket retrace area of our local high and local low we have a likely distribution area of 1758-1781.
There is some horizontal resistance in the 1700-1725 for a potential reversal but hopefully a small pull back.
Being we are in a macro down trend as price gets closer to the down trend line at what ever price level it reaches it a short trade should certainly be in order.
Trade Well.......
