To everyone who trades Tron 6.43% , the moment I've been talking about is upon us. If you remember from my last post, I said " Ultimately, I think TRX/BTC -0.17% will continue to trade sideways, until it hits the top of the downtrend channel . When that occurs, it will likely be forced to move in one direction or another. I would like to warn you, that when price action coils up like this, it can produce an explosive move. Think of it as a spring that is coiling tighter and tighter. The direction that it breaks, however, is yet to be determined." Looking at the chart, we can see that my analysis was very accurate. We have continued to trade sideways, and now TRX/BTC -0.17% is running into the top of the downtrend channel . The 50 EMA (in orange) has been like a ceiling that TRX/BTC -0.17% cant break through. Also, if you look closely, you can see that it has broken below the 78.6% retrace, and it has violated the 200 EMA (in purple,) weakening the supportiveness of that level. Ultimately, the best thing to do is let TRX/BTC -0.17% break out, and show us which direction it wants to go. Given the overall technical picture, I would imagine that we should get a continuation to the downside. However, we need to see confirmation of that, to know for sure. A breakdown will put the dotted support level in play, which rests around 380. A break to the upside, will put the 61.8% retrace in play, which rests around 928. As technical traders, who look for confirmation before placing trades, we need to see a confirmation breakout, in one direction or another. Once that occurs, we know what our upside and downside targets are. This is a bear market, so a break to the downside is to be expected.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
This information is not a recommendation to buy or sell. It is to be used for educational purposes only.