WAVES - Potential Cup & Handle Pattern but be cautious.

WAVES/USD

After a nice 300% rally here is what I see per a live stream request.

We are looking at a potential "confirmed kill" if we are unable to close a daily candle above our recent support turned resistance line. If we fail here, then our next support is coming in around the 50% Fib Retracement level - the green line on the chart. Since the Point of Control is below that at the .618 Fib Level, more than likely we only get a temporary bounce off that level, a brief scalp trade, and continued movement to the downside to re-test the Point of Control.

WAVES might become a potential buy at that level, we will just have to wait and see.

The bullish potentiality on the table right now, is a completion of a Cup & Handle Pattern. WAVES has pulled back between the .382 & .236 Retracement levels, the classical entry for a C&H bullish play. Although the traditional risk management approach is to set your stop at the 50% Fib Level, I would be much more conservative and be out of the trade if the local low is taken out.

Upside targets are on the chart. :)