Smooth Love Potion (SLP) - potential reversal swing trade
Updated
Smooth love potion has been in a 6 week decline, but volumes in the past week have begun to increase with investors paying attention to it, which is the first sign of potential swing trade. Now looking for further signs of confirmation
Positives:
It appears to have found a local demand level around 0.06, has bottomed on this zone a few times
Price trend has been broken and is holding stronger than previous breaks
MACD momentum is shifting in positive direction on D
RSI is attempting to break above trend, plus making a promising higher low. Also signalling a possible trend above the RSI 50 once again
Good volumes at possible bottom
Negatives:
OBV is still a red flag - I don't like to trade against OBV as it is a clear sign of investor confidence, but this could shift rapidly on the 4hr
Super bearish, can continue to trade lower and lower
Highly volatile, high risk high reward
I will looking for a strong close above the last swing high on the 4hr as marked on the chart, then looking for buy setups on lower time frames on retest
There is not much in the way of resistance for SLP, key levels I see are marked on the chart. But it could run quickly once it gets away
Highly volatile so trade this one safely. I will be providing updates on lower time frames to watch for health of any possible breakout
Positives:
It appears to have found a local demand level around 0.06, has bottomed on this zone a few times
Price trend has been broken and is holding stronger than previous breaks
MACD momentum is shifting in positive direction on D
RSI is attempting to break above trend, plus making a promising higher low. Also signalling a possible trend above the RSI 50 once again
Good volumes at possible bottom
Negatives:
OBV is still a red flag - I don't like to trade against OBV as it is a clear sign of investor confidence, but this could shift rapidly on the 4hr
Super bearish, can continue to trade lower and lower
Highly volatile, high risk high reward
I will looking for a strong close above the last swing high on the 4hr as marked on the chart, then looking for buy setups on lower time frames on retest
There is not much in the way of resistance for SLP, key levels I see are marked on the chart. But it could run quickly once it gets away
Highly volatile so trade this one safely. I will be providing updates on lower time frames to watch for health of any possible breakout
Note
Draw a horizontal on OBV at last swing high peak, OBV break of that level will be a good buy signal. Level has had 3 touches, once as support, twice as resistanceNote
Correction - 10 week decline! Got my numbers mixed between charts, if this week closes green that will be the first green week in 10Note
SLP breaking out nowNote
SLP currently retesting on the 4H, possible buy opportunity. Look for buy setups on lower time frames
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