HSR - preparing
Updated
HSR - lots of potential for growth from a TA perspective, with an ATH of 10x previously. This does come with the pitfall of plenty of support turned resistance points and other prior resistances to get back through. This coin piqued my interest a couple of months ago because of all the traded volume...not sure if it was manipulation - there were rumours but I haven't confirmed.
On the 4 hour we are seeing an increase in volume over the flat volume levels of the preceding few weeks, which may imply a slowly developing large cup and handle formation. In addition a small cup and handle can be seen between the 13th and today, again confirmed by volume. ADX has turned up and is moving towards trending. RSI was too overbought but has corrected well on the most recent candle. Medium EMA (77) has just crossed the long (231) with the short (7) already above so are bullishly aligned.
The price is sitting on top of the 23.6% short term retracement fib and just below the most recent resistance point which forms the top of the smaller cup. The lower timeframes show the first strong bounce down from that resistance level but are already oversold on the RSI and starting to show hidden bullish divergence.
Watch for the handle starting to form - a conservative buy is above this resistance at around 970-980 or waiting to see if we go as low as the trend line at 830. Riskier is watching for the handle formation and reading the candlesticks and divergence for the bounce.
Target for short term cup and handle is 1100 but watch for potential resistance at the 38.2% fib. Longer term targets look at prior resistance and confluence with fibs, 1500 and 24-2500 look like important areas.
Follow my TV charts here: twitter.com/Elisa_crypto
On the 4 hour we are seeing an increase in volume over the flat volume levels of the preceding few weeks, which may imply a slowly developing large cup and handle formation. In addition a small cup and handle can be seen between the 13th and today, again confirmed by volume. ADX has turned up and is moving towards trending. RSI was too overbought but has corrected well on the most recent candle. Medium EMA (77) has just crossed the long (231) with the short (7) already above so are bullishly aligned.
The price is sitting on top of the 23.6% short term retracement fib and just below the most recent resistance point which forms the top of the smaller cup. The lower timeframes show the first strong bounce down from that resistance level but are already oversold on the RSI and starting to show hidden bullish divergence.
Watch for the handle starting to form - a conservative buy is above this resistance at around 970-980 or waiting to see if we go as low as the trend line at 830. Riskier is watching for the handle formation and reading the candlesticks and divergence for the bounce.
Target for short term cup and handle is 1100 but watch for potential resistance at the 38.2% fib. Longer term targets look at prior resistance and confluence with fibs, 1500 and 24-2500 look like important areas.
Follow my TV charts here: twitter.com/Elisa_crypto
Trade active
So the little cup and handle played out nicely down at 900 and the large cup and handle has also fully formed now. Volume has supported the pattern nicely and the last 12 hours has seen the handle break up on high volume.The price has wicked at the next resistance just above the height of the cup with the candle body matching the height of the cup on the lower timeframes.
Given this resistance, the next few hours will be crucial to see whether the volume can keep up the strength to break down the sellers. The RSI has the room to move upward still and there is also a potential bullish candle pattern now forming on the lower timeframes.
C&H target around 2200, if it breaks this resistance. This is not a buy point if you are not in already. Wait until resistance is broken now (conservatively around 1580) or until the price corrects further and perhaps takes another go.
Come say hi @elisa_crypto on twitter!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.