Tellor TRB – Last impulse Before a Correction
TRB Close to a Peak:
TRB had an amazing run but, IMO, it is almost at its peak. These are the reasons why:
1. TRB’s impulsive wave up, beginning on August 25th, shaped into a Rising Broadening Wedge. According to Murphy (1999), the Broadening wedge is indicative of a market top. The wide price and volume expansion represents emotional traders.
2. There is a pronounced bearish divergence on the daily chart. The divergence signifies that the bulls are close to exhaustion.
3. The RSI value on the weekly chart is more than 87. IMO, this level is unsustainable, and TRB will have to correct for the indicator to cool off.
Current Situation:
Currently TRB cleared a weekly supply zone and, it is trying to break through the weekly resistance level of 47.8.
Next Resistance Level:
The next levels TRB has to face are:
1. weekly supply zone between 59 to 73.
2. weekly resistance at 79.2
Wave count:
I do not consider myself an EW expert. However, this count is, IMO, correct. If anyone reading this has any suggestions or corrections, please share.
According to my count, in this impulsive wave, we completed four waves and now we are at the beginning of wave five. The common target for wave five is the 0.618 extension of waves 1-3 which is at 69.85. This fits nicely with the supply zone and the weekly resistance.
From a trading perspective the count doesn’t change much but it has nice confluence.
Short Trade Idea:
I do not have a specific entry, SL, and target, yet.
I will be watching for a violation of the wedge’s support line or at the resistance lines to enter a short trade.
I am curious to know if anyone else shares my opinion. Please share in the comments
Best Wishes
TRB had an amazing run but, IMO, it is almost at its peak. These are the reasons why:
1. TRB’s impulsive wave up, beginning on August 25th, shaped into a Rising Broadening Wedge. According to Murphy (1999), the Broadening wedge is indicative of a market top. The wide price and volume expansion represents emotional traders.
2. There is a pronounced bearish divergence on the daily chart. The divergence signifies that the bulls are close to exhaustion.
3. The RSI value on the weekly chart is more than 87. IMO, this level is unsustainable, and TRB will have to correct for the indicator to cool off.
Current Situation:
Currently TRB cleared a weekly supply zone and, it is trying to break through the weekly resistance level of 47.8.
Next Resistance Level:
The next levels TRB has to face are:
1. weekly supply zone between 59 to 73.
2. weekly resistance at 79.2
Wave count:
I do not consider myself an EW expert. However, this count is, IMO, correct. If anyone reading this has any suggestions or corrections, please share.
According to my count, in this impulsive wave, we completed four waves and now we are at the beginning of wave five. The common target for wave five is the 0.618 extension of waves 1-3 which is at 69.85. This fits nicely with the supply zone and the weekly resistance.
From a trading perspective the count doesn’t change much but it has nice confluence.
Short Trade Idea:
I do not have a specific entry, SL, and target, yet.
I will be watching for a violation of the wedge’s support line or at the resistance lines to enter a short trade.
I am curious to know if anyone else shares my opinion. Please share in the comments
Best Wishes
Comment:
TRB is approaching the convergence point of the horizontal weekly support and the trendline support.
I think it has at least one push to the upside
SL below support
s3.tradingview.com/s...shots/u/U7xtbryr.png
I think it has at least one push to the upside
SL below support
s3.tradingview.com/s...shots/u/U7xtbryr.png
I think it still has at least one more push up.