IOTUSD: SMA200 as Resistance and How to Trade
The price reached another resistance line, and it is SMA200. The price action in this zone will be important for further market movement.
As the market made a good upward movement, a reversal, and a correction after that will be logical. We will be able to get new buy opportunities after the correction, where the best will be based on a reversal from the uptrend line.
The market can try to pass SMA200 and make a new high. But I don't think it will be a good idea to buy following the breakout signal. The reason is, the market looks overbought, and it should correct the previous upward movement. RSI reached the overbought zone. If we talk about buying, we had to open long positions above 0.17 level, but not following a breakout in the overbought market.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
As the market made a good upward movement, a reversal, and a correction after that will be logical. We will be able to get new buy opportunities after the correction, where the best will be based on a reversal from the uptrend line.
The market can try to pass SMA200 and make a new high. But I don't think it will be a good idea to buy following the breakout signal. The reason is, the market looks overbought, and it should correct the previous upward movement. RSI reached the overbought zone. If we talk about buying, we had to open long positions above 0.17 level, but not following a breakout in the overbought market.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
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.