ETH broke down 26D uptrend, will there be a followthru????!!!

2022年8月18日

I went against my no shorting rule and took a small position last night when we rejected from 1960 with a large wick on 4HR.
This is what usually happens - the price fakeouts with a bull break only to quickly go down and trap anyone who was playing a bull breakout.
So I decided to take a small short position for shits n giggles.

Thats where i put my stop - a Hard stop so I have a known acceptable loss if i am wrong.

Reasons for going more downside here:

-Weekly 21 EMA resistance
-Broke down from 36Days long uptrend line!
-D RSI trendline broke down!
-Nasty 4HR wick rejection!
-Need for Weekly to consolidate after 131% run from the 880 low
-Weekly RSI trendline resistance
-RS zone in 2000 area where we broke down from last time in June and some paper hands will be selling breakeven


Consolidation targets:
-D fibs of 0382 lining up with D RS at around 1600-1550 levels
- there is another support zone at about 1700, but im thinking we have a small bounce there and head a bit lower. Either way will be monitoring daily and watching for any adjustments that need to be made


right now we are testing 4HR 8EMA resistance. Lets see if bears hold it - it has been acting resistance for last 2 days

So far there isnt a bear followthru. But lets see how it pans out over next few days.

Gl Everyone and make sure to protect your bankroll, cheers