Whereto Next for ICON... and all alts?
Along with the rest of the market ICX got a nice boost yesterday and broke out of a descending wedge pattern which it had been in for the past two weeks (dashed blue line).
TLDR: Entering at the current price point comes with higher risk, as there is currently insufficient bullish momentum and neither are we at a setup point which is ideal for accumulation on a long position.
Strategy 1: Buy into the breakout above the EMA30 for a swing trade position. (riskier)
Strategy 2: Wait for the market to come to you and enter closer to recent support zones to establish a long position.
Reminder: Best approach is always to stagger your entry points to increase your position as the price continues to drop.
TECHNICAL:
On the bullish side we still see above average volume and despite the price movement we are still in a slightly wider descending wedge pattern.
However, there are still reasons to be cautious regarding establishing new positions. The biggest reason being that daily RSI is now at 42. If you look back at RSI history on ICX you will see that 42 has been the critical pivot point for price movement based on whether we are in a bullish or bearish market. In other words, like most of the alts at the moment, ICX next move will be based on the trend set by big brother BTC -1.78% . Looking at the BTC -1.78% and ICX charts, it is clear we are still in a bearish trend and have not "broken out" quite yet.
SUPPORT & RESISTANCE:
Price wise, if we do continue bearish we are likely to find support in 3 locations. 1st at the bottom of the wedge (0.0002920-0.0002960), 2nd at the low of April 6 (0.0002805) and 3rd, strongest support will be at the double bottom from the March 18 low (0.00002135).
For resistance, refer to the "quadrant of resistance" on the chart. Local resistance at the top of the current wedge (0.0003710), next at the longer term bearish trend line (0.0004500) and finally in the zone above the 61.8% fib retrace and the high of April 28 (0.0004825 - 0.0005249).
TLDR: Entering at the current price point comes with higher risk, as there is currently insufficient bullish momentum and neither are we at a setup point which is ideal for accumulation on a long position.
Strategy 1: Buy into the breakout above the EMA30 for a swing trade position. (riskier)
Strategy 2: Wait for the market to come to you and enter closer to recent support zones to establish a long position.
Reminder: Best approach is always to stagger your entry points to increase your position as the price continues to drop.
TECHNICAL:
On the bullish side we still see above average volume and despite the price movement we are still in a slightly wider descending wedge pattern.
However, there are still reasons to be cautious regarding establishing new positions. The biggest reason being that daily RSI is now at 42. If you look back at RSI history on ICX you will see that 42 has been the critical pivot point for price movement based on whether we are in a bullish or bearish market. In other words, like most of the alts at the moment, ICX next move will be based on the trend set by big brother BTC -1.78% . Looking at the BTC -1.78% and ICX charts, it is clear we are still in a bearish trend and have not "broken out" quite yet.
SUPPORT & RESISTANCE:
Price wise, if we do continue bearish we are likely to find support in 3 locations. 1st at the bottom of the wedge (0.0002920-0.0002960), 2nd at the low of April 6 (0.0002805) and 3rd, strongest support will be at the double bottom from the March 18 low (0.00002135).
For resistance, refer to the "quadrant of resistance" on the chart. Local resistance at the top of the current wedge (0.0003710), next at the longer term bearish trend line (0.0004500) and finally in the zone above the 61.8% fib retrace and the high of April 28 (0.0004825 - 0.0005249).
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