For some time ETP has been behaving (trending) exactly how we like our markets - bullish. Current price action suggests the dream is over. The first indication of weakening was the break of the primary trend line, the failed break-out from the descending wedge, the break of the secondary trend line, and the failure to make a new high. A break of $2.98, let's just say $3.00, and daily close below this level will confirm and I will become a seller of rallies instead of a buyer of dips.
Let me know your thoughts :)
Let me know your thoughts :)
Comment:
Current price action:
Comment:
Another opportunity to open a short has presented itself, albeit a higher risk one: ETP is re-testing the uptrend line after finding support at $3.00. I plan on opening half position short at this level upon evidence of weakness.
Trade closed: target reached:
I closed my half-position short at 3.0122 for a 0.21/ETP gain in case it bounces from the 2.94-3.00 area.
With continued signs of weakness I will look for more rallies to sell despite ETP not breaking below $2.98 yet.
With continued signs of weakness I will look for more rallies to sell despite ETP not breaking below $2.98 yet.
Comment:
Observation; The RSI is below 50 for the first time since July 4th.
Although I am bearish, I am mindful that every push, in either direction, has a pull-back. So be sure to only sell on rallies and buy on dips. Don't sell into strong dips or buy into strong rallies, let the market come to you, don't chase after it.
Although I am bearish, I am mindful that every push, in either direction, has a pull-back. So be sure to only sell on rallies and buy on dips. Don't sell into strong dips or buy into strong rallies, let the market come to you, don't chase after it.
Comment:
And this is why we wait for confirmation:
The $3.28 - $3.30 level has held as resistance before and here it coincides with my uptrend line so I will open a short.
The $3.28 - $3.30 level has held as resistance before and here it coincides with my uptrend line so I will open a short.
Trade closed: stop reached:
Stop loss hit at $3.3122. I'll sit out and wait for some new market structure.
Order cancelled:
ETP has broken and closed on 4hr time frame above the $3.44 level which would make the re-test of this level a good buy if we weren't at such extreme highs and previously displaying signs of weakness. I'm back in BTC until it finishes it's run, I'll take another look at ETP then.