Fantom is at Support Will It Hold?
Fantom had an amazing run between November 22nd until February 23rd . In 73 days Fantom’s price increased by almost 300%. However, In the last four months (116 days) FTM is in a downtrend. The chart structure emerging from this correction is of a Triangle. The question is will Fantom hold support on the Triangle’s diagonal support line, or will it break to the downside?
The short answer: yes, probably. This is why:
Support Levels:
1. The diagonal support line has held Fantom’s price in January and March.
2. If we examine the RSI, we can see a Falling Wedge pattern. A Falling wedge is a bullish reversal pattern. The diagonal support of this wedge has held Fantom’s price on several occasions (blue dots).
3. Regardless of pattern, The RSI level of Fantom is close to oversold. Past experience shows that FTM rejects the oversold level.
4. Should Fantom temporarily lose the diagonal support, the 0.5 Fib retracement (pulled from the low of November to high of February) is at 0.3187 and I expect it to hold.
Admittedly, Fantom is at a stage that it lost some of the hype. Regardless, in the last bull market Fantom performed extremely well and I see no reason why it can’t do just as well in the future.
Targets:
I think FTM is good for a long-term hold. I expect FTM to exceed it’s previous ATH in the next bull market. I also think that short-term FTM provides a good R: R to risk a trade.
My short-term targets for FTM are:
1. 0.41 USD (daily resistance).
2. 0.45 USD (diagonal resistance).
3. 0.55 USD (daily resistance).
4. 0.65 USD (daily resistance).
Trade Idea:
• Entry: 0.33
• SL: 0.3185
• Targets: As mentioned above.
• R: R 1:7 for the first target
NFA
Feedback will be appreciated
Best wishes to all.
The short answer: yes, probably. This is why:
Support Levels:
1. The diagonal support line has held Fantom’s price in January and March.
2. If we examine the RSI, we can see a Falling Wedge pattern. A Falling wedge is a bullish reversal pattern. The diagonal support of this wedge has held Fantom’s price on several occasions (blue dots).
3. Regardless of pattern, The RSI level of Fantom is close to oversold. Past experience shows that FTM rejects the oversold level.
4. Should Fantom temporarily lose the diagonal support, the 0.5 Fib retracement (pulled from the low of November to high of February) is at 0.3187 and I expect it to hold.
Admittedly, Fantom is at a stage that it lost some of the hype. Regardless, in the last bull market Fantom performed extremely well and I see no reason why it can’t do just as well in the future.
Targets:
I think FTM is good for a long-term hold. I expect FTM to exceed it’s previous ATH in the next bull market. I also think that short-term FTM provides a good R: R to risk a trade.
My short-term targets for FTM are:
1. 0.41 USD (daily resistance).
2. 0.45 USD (diagonal resistance).
3. 0.55 USD (daily resistance).
4. 0.65 USD (daily resistance).
Trade Idea:
• Entry: 0.33
• SL: 0.3185
• Targets: As mentioned above.
• R: R 1:7 for the first target
NFA
Feedback will be appreciated
Best wishes to all.
Order cancelled:
Yesterday, June 1st FTM went below the 0.5 Fib level. The broader support zone is holding, so is the RSI structure. However, I am reluctant to take a long at this time before I see a convincing move out of the support zone.
