TenX (PAY) About to Break Out? 15-20% Quick Profit Potential!
Hello and welcome to TenX (PAY) vs Bitcoin
PAY broke out of its down trend back on 01/04/2018. We have since been in an uptrend, however we haven’t seen the gains that a lot of other Altcoins have enjoyed. This could be about to change…
Why does this means things are about to change? Good question… well as you can see, we have formed a symmetrical triangle (technically as this is a pattern less than a few weeks old it is actually a pennant hence I have added the height of the flag pole in blue). The good thing about symmetrical triangles is that they usually form during a trend as a continuation pattern (though in some cases they do denote a trend reversal). Given we are in an uptrend then it is likely we will see a breakout to the upside. When we also consider the general bullish bias of the overall market, then this adds to our case.
Ideally we would have liked to have seen a breakout of the top resistance line within the first ½ to ¾ of the pattern which we haven’t seen. Given we are nearing the apex a break this far through can turn out to be insignificant. So this is something to watch out for!
I have added in an area between the red dashed lines which represent heavy resistance. This also coincides with the height of the flag pole and thus our target (pink line) is just below this representing a 15-20% profit depending on where you get in and out on a confirmed breakout with volume.
Looking at our moving averages the 26 EMA crossed over the 12 EMA giving us a bullish bias back on 14th of April. RSI and MACD are both where you would expect them to be given we are coming to a decision point. Aroon Up/Down was shifting towards a bearish bias but this has started to fade over the last day or two.
How to trade this… well what we need to see is a break to the upside of the symmetrical triangle with some decent volume. If this occurs then we will likely reach our target (pink line) before retracing from the resistance (break outs from symmetrical triangles will often retrace back to the level of breakout to test it as support before continuing in their trend direction). If this breakout and retrace do occur, then it could also be crucial in the formation of a hypothetical ascending channel which I have added in as the orange dashed lines.
One final note: It is important to ensure we have volume on the breakout; as like I mentioned earlier - a breakout this close to the apex can often be insignificant. That being said even if it is insignificant we will still be going up somewhat; and it is worth noting that we have quite a lot of support under us (we have the 50 EMA which is not pictured right under us) so I can’t see a break to the down side occurring.
Trade safe!
Cheers
PAY broke out of its down trend back on 01/04/2018. We have since been in an uptrend, however we haven’t seen the gains that a lot of other Altcoins have enjoyed. This could be about to change…
Why does this means things are about to change? Good question… well as you can see, we have formed a symmetrical triangle (technically as this is a pattern less than a few weeks old it is actually a pennant hence I have added the height of the flag pole in blue). The good thing about symmetrical triangles is that they usually form during a trend as a continuation pattern (though in some cases they do denote a trend reversal). Given we are in an uptrend then it is likely we will see a breakout to the upside. When we also consider the general bullish bias of the overall market, then this adds to our case.
Ideally we would have liked to have seen a breakout of the top resistance line within the first ½ to ¾ of the pattern which we haven’t seen. Given we are nearing the apex a break this far through can turn out to be insignificant. So this is something to watch out for!
I have added in an area between the red dashed lines which represent heavy resistance. This also coincides with the height of the flag pole and thus our target (pink line) is just below this representing a 15-20% profit depending on where you get in and out on a confirmed breakout with volume.
Looking at our moving averages the 26 EMA crossed over the 12 EMA giving us a bullish bias back on 14th of April. RSI and MACD are both where you would expect them to be given we are coming to a decision point. Aroon Up/Down was shifting towards a bearish bias but this has started to fade over the last day or two.
How to trade this… well what we need to see is a break to the upside of the symmetrical triangle with some decent volume. If this occurs then we will likely reach our target (pink line) before retracing from the resistance (break outs from symmetrical triangles will often retrace back to the level of breakout to test it as support before continuing in their trend direction). If this breakout and retrace do occur, then it could also be crucial in the formation of a hypothetical ascending channel which I have added in as the orange dashed lines.
One final note: It is important to ensure we have volume on the breakout; as like I mentioned earlier - a breakout this close to the apex can often be insignificant. That being said even if it is insignificant we will still be going up somewhat; and it is worth noting that we have quite a lot of support under us (we have the 50 EMA which is not pictured right under us) so I can’t see a break to the down side occurring.
Trade safe!
Cheers