Potential Breakout in FANG Towards 8800
Trend Analysis
The main view of this trade idea is on the 4-Hour Chart. The index FANG (FNG1!) has been in a rangebound price movement after hitting resistance around the 7400 price level in mid February 2021. FANG held support at 6050 and made a second attempt to break above 7400 in mid July. After that failure the index quickly found some support around 6800 and is heading towards that 7400 resistance level. Expectations are for a break higher in FANG, with that target being 8800.
Technical Indicators
FANG is currently above its short (25-MA), medium (75-MA) and long (200-MA) fractal moving averages. The RSI is above 50 with the KST in a positive zone. Also over multiple other timeframes, the technical indicators are signaling a buy.
Recommendation
The recommendation will be to go long at market. Stop loss will be set around the 6000 price level and a target of 8800. This produces a risk-reward ratio of 1.36.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time publishing, I have a position in FNG1!.
The main view of this trade idea is on the 4-Hour Chart. The index FANG (FNG1!) has been in a rangebound price movement after hitting resistance around the 7400 price level in mid February 2021. FANG held support at 6050 and made a second attempt to break above 7400 in mid July. After that failure the index quickly found some support around 6800 and is heading towards that 7400 resistance level. Expectations are for a break higher in FANG, with that target being 8800.
Technical Indicators
FANG is currently above its short (25-MA), medium (75-MA) and long (200-MA) fractal moving averages. The RSI is above 50 with the KST in a positive zone. Also over multiple other timeframes, the technical indicators are signaling a buy.
Recommendation
The recommendation will be to go long at market. Stop loss will be set around the 6000 price level and a target of 8800. This produces a risk-reward ratio of 1.36.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time publishing, I have a position in FNG1!.