Ethereum: The Price Action at the Key Support

4 окт. 2020 г.

In order to make a profit in the financial markets, we can use even the simplest technical analysis tools like support and resistance lines and zones. We don't need the complicated EWT, tens of indicators and the detailed fundamental analysis. We just need to look at the chart and draw 1-2 levels. Of course, we must have knowledge how to do it properly.

Let's look at the weekly timeframe. It is obvious that there is an important zone for the market between 300-320$ levels. The price bounced from the zone as from the resistance. Now the same zone is acting as a support. What does it mean for us?

It means if the price can stay above the support, it will become a starting point for a new upward movement. It means that we should search for possible buying opportunities from this zone using the daily and hourly charts in combination with reversal signals. It means that if the price breaks this support, it will be a solid bearish signal where the price will try to reach the previous low at 100$ support. Don't you think that we have enough information for planning future trades?



Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.