SOL Analysis Deep Dive: Identifying Optimal Entry and Exit ZonesYesterday, SOL gave a sharp downside shakeout, dropping from the weekly open at $147.98 (perfectly retested) down to the 0.5 Fib retracement of the swing at $140.25. Here’s a structured breakdown of the key levels, trade setups, and R:R profiles for both longs and shorts:
🔑 Key Levels & Confluences
1. Higher-Timeframe Opens
Weekly Open & Retest: $147.98 – pivoted price before the drop
Monthly & Prior-Day Open Cluster: $147.98–$146.31 – strong support confluence zone
2. Fibonacci Support Zones
0.5 Fib at $140.25 – primary mean-reversion entry
0.786 Fib (smaller wave) at $138.78 – secondary, deeper support
3. Order Block
Daily Bullish Order Block at $139.87 – just below 0.5 Fib, adds extra support
4. Volume-Weighted Average Price
Anchored VWAP (from ATH $295.83) at ~$166.45 – key upside resistance
5. Market Profile Value Areas (10-Day Range)
Value Area High (VAH) at ~$153.00 – overhead resistance confluence
Value Area Low (VAL) at ~$145.75 – underpins support
📈 Long Trade Setups
1. 0.5/0.786 Fib + Daily Bullish Order Block
Entry: $141-138.78
Stop-Loss: $137.5
Target: $165 (anchored VWAP / Fib zones)
R:R ≈ 9:1
2. Higher-Timeframe Open Cluster
Entry Zone: $147.98–$146.31(monthly/weekly open)
Stop-Loss: $142.5
Target: $165
R:R ≈ 3:1
• Why these levels? The 0.5 Fib is a classic mean-reversion zone, bolstered by the daily order block. The $147–146 zone ties together multiple opens (weekly, monthly, prior-day), offering a solid demand area if price retraces back up.
📉 Short Trade Setup
Trigger: Rejection / swing-failure around $153.4
Entry: $153.4
Stop-Loss: $154.3
Target: Weekly/Monthly open (~$147)
R:R ≈ 6:1
• Low-risk short: A clean rejection at the recent high lets you define risk tightly above the swing, aiming to capture the retrace back to the opens.
🎯 Summary & Game Plan
Primary bias: Look for long entries at the 0.5 Fib ($140.25) or the open-cluster zone ($147–146), with targets toward the anchored VWAP at ~$166.
Alternate bias: A short on clear rejection from $153.4, targeting the opens as support.
Risk management: Keep stops tight (SL below $137.5 or above $154.3) to maximize R:R on your favored setups.
Volume & Price Action: Confirm entries with an uptick in volume or bullish price structure (for longs) or swift failure patterns (for shorts).
Now it’s a waiting game! Let price revisit these zones, watch for confirmation signals, and then scale into your chosen side. Good luck! Don't chase, let the charts come to you!
____________________________________
If you found this helpful, leave a like and comment below! Got requests for the next technical analysis? Let me know.
