BONKUSD 12/6/2024
BONKUSD Daily Chart Analysis
• Background: BONKUSD was introduced on Coinbase in December 2023. From its launch through November 2024, the price consolidated within a symmetrical triangle pattern.
• Breakout: On November 10th, 2024, the price broke out of the triangle with massive volume, soaring as high as +140% from the breakout point.
• Current Setup: Following the breakout, the price has pulled back and formed a bull flag pattern. However, confirmation of the breakout from the bull flag has not yet occurred.
• Momentum: The MACD remains in bullish territory but is currently below its signal line. The histogram is contracting, signaling a potential crossover of the MACD above its signal. Such momentum could drive the price to break out of the bull flag, providing confirmation.
Trade Rationale:
Despite the lack of breakout confirmation, entering long prematurely is justified by the strong bullish context and potential for momentum to shift. The stop-loss is placed with extra room to account for any pullbacks within the flag before a breakout occurs.
Trade Setup (Long):
• Entry: 0.00004314
• Stop Loss: 0.00003305 (-23.39%)
• Target #1: 0.00008468 (+96.29%, 4.12 RR ratio)
• Target #2: 0.00012728 (+194.29%, 8.24 RR ratio)
This setup aligns with the post-breakout consolidation and the potential for the MACD to trigger a new bullish move.
• Background: BONKUSD was introduced on Coinbase in December 2023. From its launch through November 2024, the price consolidated within a symmetrical triangle pattern.
• Breakout: On November 10th, 2024, the price broke out of the triangle with massive volume, soaring as high as +140% from the breakout point.
• Current Setup: Following the breakout, the price has pulled back and formed a bull flag pattern. However, confirmation of the breakout from the bull flag has not yet occurred.
• Momentum: The MACD remains in bullish territory but is currently below its signal line. The histogram is contracting, signaling a potential crossover of the MACD above its signal. Such momentum could drive the price to break out of the bull flag, providing confirmation.
Trade Rationale:
Despite the lack of breakout confirmation, entering long prematurely is justified by the strong bullish context and potential for momentum to shift. The stop-loss is placed with extra room to account for any pullbacks within the flag before a breakout occurs.
Trade Setup (Long):
• Entry: 0.00004314
• Stop Loss: 0.00003305 (-23.39%)
• Target #1: 0.00008468 (+96.29%, 4.12 RR ratio)
• Target #2: 0.00012728 (+194.29%, 8.24 RR ratio)
This setup aligns with the post-breakout consolidation and the potential for the MACD to trigger a new bullish move.
Trade active
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.