I am a big believer in Auction Market Theory, and I think the balance area formed in Ripple over the last two weeks is the cleanest among the majors, and presents a very good risk:reward long opportunity. Upside exploration has failed and thus the price has returned to test the downside. There is a potential for the downside to crack, but in the process it sets up for a very good risk:reward long opportunity, whereby a retest of the lower edge of the long balance area should give a strong tradable bounce back to the Point of Control. The Consensus conference next week in NYC could also bring some positive news to the whole space so the fundamental bias for me is still positive. Would look to get long at 0.78, with a stop loss at 0.745 and a target price of 0.845. Time frame of the trade would be anywhere from a few days to perhaps a week. The trade also presents an optionality kicker that the price may go all the way back to the upper edge of the balance (0.90 levels) but would certainly take half profits at the PoC before reassessing.
Trade active:
This is a live trade now, just got filled a bit better at 0.775. Using stop at 0.745 and target of 0.845 as mentioned.
Trade active:
Trade is in the money, would look to move the stop level higher to the lower end of the balance area, 0.755 (so move up by 1 c).
Trade closed: stop reached:
Stop reached (0.755), closing the trade for a P&L of -2.58%.