CVX Update — Ongoing Downtrend, But Signs Of Hope!CVX was hyped massively when it pumped like crazy one month ago. However, it equalized the entire pump just a couple of days later.
Yesterday, we saw another big green candle. Immediately, you found tons of moon posts.
With this post, I want to provide an unbiased picture about CVX and answer the questions about why I won't take trades on higher timeframes yet but will have a closer look at lower timeframes.
Let's dive in!
When checking the CVX chart, you have to keep a close eye on three essential areas.
First, there's the long-term downtrend. This trendline started in 2022 and is essential for long-term trades. If the price is below this trend, I don't consider long trades on higher timeframes.
Besides, we have resistance at ~4.2 and resistance at $3. Currently, CVX is trying to break above the $3 resistance. The first step is a close above and confirmation on the daily chart.
A trade setup aiming for the 4.2 target can make sense if this happens. However, this has to be evaluated in detail at that time. However, CVX was rejected and dived below the resistance at the time of writing.
Summarized
- For long-term entries, watch the downtrend line. Don't enter before the trend has broken.
- Short-term setups can try to trade the area between 3-4.2 once the 3-resistance has been climbed and confirmed.
