UNI / TetherUSLong
UNI (Uniswap): Channel Down Breakout
Trade setup: Price is in a Downtrend, however, it had a bullish breakout from Channel Down pattern, above $6.50 resistance, which could signal at least a temporary bullish trend reversal, with upside potential to $8.00. Stop Loss at $5.40. This is a riskier trade setup because it’s a trend reversal not a trend continuation setup. It’s against the overall downtrend. Learn to trade breakouts in Lesson 7 and Risk Management in Lesson 9. Uniswap is the biggest DEX – see On-chain data, and has been a beneficiary of the move to decentralized exchanges and non-custody trading solutions.
Pattern: Price is trading in a Channel Down pattern. With emerging patterns, traders who believe the price is likely to remain within its channel can initiate trades when the price fluctuates within its channel trendlines. With complete patterns (i.e. a breakout) - initiate a trade when the price breaks through the channel's trendlines, either on the upper or lower side. When this happens, the price can move rapidly in the direction of that breakout. Learn to trade chart patterns in Lesson 8.
Trend: Short-term trend is Strong Down, Medium-term trend is Down and Long-term trend is Strong Down.
Momentum: Price is neither overbought nor oversold currently, based on RSI-14 levels (RSI > 30 and RSI < 70).
Support and Resistance: Nearest Support Zone is $5.60, then $4.80. Nearest Resistance Zone is $6.50, then $8.00.
Pattern: Price is trading in a Channel Down pattern. With emerging patterns, traders who believe the price is likely to remain within its channel can initiate trades when the price fluctuates within its channel trendlines. With complete patterns (i.e. a breakout) - initiate a trade when the price breaks through the channel's trendlines, either on the upper or lower side. When this happens, the price can move rapidly in the direction of that breakout. Learn to trade chart patterns in Lesson 8.
Trend: Short-term trend is Strong Down, Medium-term trend is Down and Long-term trend is Strong Down.
Momentum: Price is neither overbought nor oversold currently, based on RSI-14 levels (RSI > 30 and RSI < 70).
Support and Resistance: Nearest Support Zone is $5.60, then $4.80. Nearest Resistance Zone is $6.50, then $8.00.
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