Theta Trade setupWeekly: long term analysis
THETA was one of the best performers during the last bull run.
After a 95% deep correction during the bear market, THETA has built a very clear and horizontal support at the 0,56$ zone.
Daily: short term analysis
After a first strong upward movement (from S1) in the beginning of 2023, FTM has been building a double bottom with a confirmed bounce on the support line alongside a volume increase. The second shoulder is being completed right now.
Strategy
Buy signal on a daily close break of the resistance line at 1,30$.
Objective 1: Resistance near the inverted Head&Shoulder swing move target at 2,64$
Objective 2: next resistance line at Double Bottom target (swing move) to 4,34$
Objective 3: ATH at 15$
Invalidation
Mental Stop: just below the second shoulder. This setup proposes a nice Risk Reward ratio of 4.
If prices retrace to this stop level we will wait for the weekly closing price then set a Stop loss ¼ or Risk below the weekly close price.
Risk = Distance between Mental stop and entry point.