ALGO builidng volume pressure, trending above resistance Another personal trade I am looking at:
ALGO like many of the alts is looking like it will breakout soon if bitcoin remains green, it was an over-performer with the early Sept' breakout and has been pulling back since. Positive volume pressure has been building despite the persistent pull back. On the 4hr it is facing the resistance of an immediate local trend and a slightly higher global trend (light pink). This may Impede an explosive breakout, but there are many other positive signs building for Algo.
Positive signs:
OBV trending above significant resistance (notice every time it has broken this resistance in has been knocked back down)
Significant OBV Bullish divergence
Slight MACD bullish divergence
MACD range tightening, breakout coming (could be up or down)
Sitting on local demand zone
Negatives:
Double trends to break (global trend channel looks like bullish flag - big positive if broken)
Tightly coupled with bitcoin movements
Entry on confirmation of trend break with strong volume closing above last pivot, or higher risk entry on touch of lower RSI trend. Look for break of upper RSI trend for further confirmation of breakout and possible increase in position size on pullback.
Modest Profit targets marked, I will be taking profits prudently unless bitcoin shows clear signs of strength
Always follow your trading plan, this is mine - far from financial advice :)
