OGNBTC | Trade Setup | S/R Flip | Bullish Price Action

2020年7月4日

Today's analysis – OGNBTC – breaking bullish from its immediate downtrend as it reaches its apex.

Points to consider:
- Daily support respected
- S/R flip
- 21 EMA (visual guide)
- Low Volume
- RSI breaking above 50
- Bullish Stochastics

OGNBTC has respected daily support upon retest, establishing a higher low (early signs of trend reversal).

Local resistance is breached as price breaks bullish from its immediate downtrend. Establishing a body candle close above resistance adds validity to the break and an S/R flip retest of resistance supports a bullish reversal.

The 21 EMA will act as a visual guide as the trend develops and price respects the MA assisting in trade management.

Volume has been declining and remaining below average. Historically, an inflow of volume has coincided with bullish price action, indicative of an influx being probable. Volume follow-through is essential to solidify price action and avoid any false breaks.

RSI breaking above 50 indicating increasing strength in the market. Stochastics projecting up, breaking the 50 level is indicative of increasing momentum in the market. Both oscillators need to range and hold above the 50 level for a bullish continuation.

Overall, in my opinion, a successful break and retest of local resistance with volume follow-through validates a long trade with technical targets above; risk defined (SL) below daily support.

What are your thoughts?

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And as always,

Focus on you, and the money will too!