As we’ve done a couple of times this week, let’s start off today’s analysis with a chart. The chart below is a fifteen-minute candlestick chart showing the action we saw in the bitcoin price overnight, and the framework from which we were executing our strategy overlaid.
As the chart shows, action between our analysis publication and this morning’s session has been pretty volatile, but not in a great way. We’ve been chopped out a few times on the back of some false breaks, and a spike down into (and at one point out to the downside of) our range took out a couple of stops. Shortly before the UK session kickoff, however, price broke to the upside, and as the chart shows, we got a more sustained upside run. Whether it will be enough to take out our target at 425 remains to be seen – price reversed a little ahead of 423.5 – but as things stand we remain in the trade towards our goal.
For those not yet in a trade, here’s a look at the secondary focus range for today’s European morning. The chart below is the same chart as above, but with altered parameters to reflect this morning’s action so far.
As you can see, we’ve shifted our range towards the most recent swing high, and support comes in at 420 flat, with resistance at 423.59. It’s pretty tight, so we’ll be scalping breakouts for the morning session.
A long entry on a close above in term resistance towards an initial upside target of 427 flat, with a stop at 421.5 to define risk. Conversely, a close below support will signal a short trade towards 417 flat. A stop on this one somewhere in the region of 422 flat will ensure a positive risk to reward profile on the position.
Charts courtesy of Trading View