TRX Cup and Handle

A nice continuation pattern here from TRX's bounce off the local bottom. Still waiting to see some more confirming volume but this has formed a beautiful cup and a short handle. Short handles are generally considered an indication of a strong trend, and would point towards a more convincing upside movement. We have also just closed above the 200 MA on the 4h, which can now serve as a support.

The caution here is the BTC is in a precarious spot and has yet to show stability. CME futures close on Friday and this generally corresponds to more volatility. TRX is also entering into a high resistance zone around the psychological point of 400 sats. A more cautious approach may use a convincing breakout there as an entry signal.

Entry signal here is confirming volume above a break out point (either the handle or the 400 level). Projection based on cup depth to handle is around the 452 mark. Dotted lines correspond to horizontal resistance. If this displays a strong breakout (and BTC similarly moves up), then I will probably keep my profit taking light and run a trailing stop as TRX has a tendency to go on big runs. Stop loss will be at 349.

Comment:

Never got the confirming volume here and it has fallen back into the channel. This set up remains valid until we break out of the channel to the downside. If this breakout happens, then I'll be moving SL to below the nearest support (337 being the next support).

Keep on an eye on BTC as its movements will largely determine if TRX confirms this pattern.

Comment:

Updated picture on a lower TF and with the channel extended out more. Thus far, TRX has stayed true to this channel. If BTC moves up, then I plan to keep a close watch on this breakout.

Comment:

Still waiting on the the right movement here. We've broken out of the handle trading range again, but if you look at the volume (below the chart). It is trending down. Entry is only when we see the breakout with confirming volume support.