Luna Trade Setup - Approaching Major Support, Time For A Bounce?
Hello Traders...
Here is my analysis/ trade setup for LUNA.
As you can see LUNA has had an incredible pullback recently. As of this post LUNA is down nearly 33% in the past 10 days. Due to this massive decline in price LUNA is overdue for a rather large bounce. The question is, "Where will this bounce occur from?"
-There are 2 levels that I have my eyes on...
*Long Entry Setups*
Level #1 ($76)
-The level right around $76 is a strong support level, the probabilities favor a bounce here.
- More than likely I will open a position at this level.
Level #2 ($70)
-If I dont open a position at level #1, level #2 at $70 will be where I will open a long position.
-If level #1 is broken and I have an open position from level #1, I will add to my position at level #2 using the DCA strategy.
*Take Profit*
-The take profit level from a bounce would be $88 which is roughly 15.88%. (You can always take profits early theres nothing wrong with that, especially if you're using leverage.)
What if both level are broken?
-If both levels are broken and I have an open position, I will add even more at the major trendline around $60. Luna should get a rather large bounce from this level, enough to at the very least allow me to break even.
Short Position (Low Probability of hitting level in short term)
-If price does not hit level #1 or #2 and reverses, keep an eye on the trendline around $108-$110 as a potential short entry.
Happy Trading and Good Luck!
Here is my analysis/ trade setup for LUNA.
As you can see LUNA has had an incredible pullback recently. As of this post LUNA is down nearly 33% in the past 10 days. Due to this massive decline in price LUNA is overdue for a rather large bounce. The question is, "Where will this bounce occur from?"
-There are 2 levels that I have my eyes on...
*Long Entry Setups*
Level #1 ($76)
-The level right around $76 is a strong support level, the probabilities favor a bounce here.
- More than likely I will open a position at this level.
Level #2 ($70)
-If I dont open a position at level #1, level #2 at $70 will be where I will open a long position.
-If level #1 is broken and I have an open position from level #1, I will add to my position at level #2 using the DCA strategy.
*Take Profit*
-The take profit level from a bounce would be $88 which is roughly 15.88%. (You can always take profits early theres nothing wrong with that, especially if you're using leverage.)
What if both level are broken?
-If both levels are broken and I have an open position, I will add even more at the major trendline around $60. Luna should get a rather large bounce from this level, enough to at the very least allow me to break even.
Short Position (Low Probability of hitting level in short term)
-If price does not hit level #1 or #2 and reverses, keep an eye on the trendline around $108-$110 as a potential short entry.
Happy Trading and Good Luck!