FTM → Blast Off to $0.40!? Or Rejected to $0.20? Let's Answer.Fantom continues its bullish blast bouncing hard off of the 4HR 200EMA ribbon and then the 30EMA. We're now closing in on Resistance Zone #1 and need to know what the next trade move will be.
How do we trade this? 🤔
We're too close to the resistance zone to long and we don't yet have any indication that the price will reverse. Best to wait on the sidelines until 1 of 2 outcomes unfold:
1. Rejection at Resistance #1: Strong bear signal and confirmation bars closing on or near their lows. Short scalp a 1:1 with half of your position then swing the to 1:2. You could also swing until you see a reversal bar to the upside.
2. Breakout of Resistance #1: Wait for Resistance #1 to be broken and tested as support. Long that support and sell half your position at a 1:1 Risk/Reward Ratio then the rest at 1:3 or if the price fails at Resistance #2.
💡 Trade Ideas 💡
Long Entry: $0.355
🟥 Stop Loss: $0.345
✅ Take Profit #1: $0.365
✅ Take Profit #2: $0.385
⚖️ Risk/Reward Ratio: 1:3
Short Entry: $0.335
🟥 Stop Loss: $0.344
✅ Take Profit #1: $0.326
✅ Take Profit #2: $0.317
⚖️ Risk/Reward Ratio: 1:2
🔑 Key Takeaways 🔑
1. Bullish Macro Trend, Bias to Long!
2. Strong Support at 200EMA, Bias to Long.
3. Coming up on Resistance Zone #1, Wait to Enter.
4. If Rejected at Resistance #1, Short Scalp.
5. If Break Resistance #1, Long Support.
6. RSI at 63.00 and above Moving Average, Bias to Long.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
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