ETHBTC Inv. Head and shoulders| Bull Flag| Structural Resistance

24 maj 2020Evening Traders

Eid Mubarak to those who celebrate it!

Today’s Analysis – ETHBTC – breaking its neck line now forming a potential bull flag with the technical target associated at structural resistance.

Points to consider,
- Inverse H&S /Bull Flag pattern
- Structural resistance confluence
- Neckline support
- RSI above 50
- Stochastics momentum store up
- Bear volume declining

ETHBTC’s technical target is in confluence with the structural resistance. This level defines the range for ETHBTC as structural support is the established neck line.

The current 200 EMA has flipped support, must hold for the bull flag to play out.

The RSI is above 50, not officially oversold, there is strength in the current market. The stochastics is trading in the upper regions, can stay here for an extended period of time.

Bear volume nodes are below average, bulls need to see an influx out of the probable bull flag. The macro volume nodes are in synch with the head and shoulders pattern.

Overall, in my opinion, ETHBTC is likely to test structural resistance. A long trade can be validated on a retest of the neckline (conservative entry) or a break of the bull flag (aggressive entry) as both technical targets align with structural resistance.

What are your thoughts?

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And remember,

“It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you‘re wrong.” -George Soros