Action overnight served up some pretty wild movement, especially on the intraday level, and made it pretty difficult to be in the market at times. We set up against yesterday’s trading range with some pretty tight parameters, and were able to get in and out of the markets on a relatively swift downside break. Shortly after we closed out our trade, however, and before we had any real chance to reevaluate our predefined key levels, price reversed and gapped back to the upside (this is illustrated on the chart below). The gap didn’t last long, and filled quickly on what looks to have been a spike in sell volume at an unusual spread, and now price has carved out what seems to be a decent range with which we can head into today’s session. So, as we move forward into this Thursday morning out of Europe, let’s take a look at our new range in focus, and try and define some entry and exit points.
The chart below is a five-minute candlestick chart derived from the SimpleFX exchange, and it shows the last twelve hours or so worth of action in the bitcoin price. Of particular note is the gap and subsequent price spike mentioned a little earlier (around 1:55 am) and our predefined range (highlighted in green). Get a look at that before we kick things off.
So as the chart shows, the rage in focus for today’s session is defined by in term support to the downside at 652 flat (overnight lows) and resistance at 658. It’s too tight for intrarange, so breakout only this morning.
Long on a close above resistance, with a stop somewhere around 656 to define risk and a target of 666. Short on a close below support, targeting 640 and using 645 as our exit point if price reverses.
Charts courtesy of SimpleFX