CAKE has reclaimed 1.50 after a scary 1.30 bottom, but is it enough?
In the first place, we must stress out the fact that CAKE´s correction has been violent and very steep. However, it you look at things from a weekly perspective you might just think that the whole movement down from the ATH is corrective rather than impulsive.
Having said that, reality remains that CAKE is weak and the recent upward momentum is still not enough to consider things calmed.
If you check the Daily timeframe with EMAs, you might see as I do, that the price action looks corrective (upwards) and that there´s high risk of rejection of the (orange) EMA 55, which would result in revisiting recent lows.
Short term, I see a possible triangle that could likely break down after perhaps reaching the $1.60-1.62.
What seems reasonable is to wait for clarity, and only enter LONG when and if the price overcomes EMA55, retests (correction) and begins upward momentum.
This because downward risk seems more plausible to me at this point.
Also remember: 1.50 (Achilles last stand?) is weak. And from there... support is thin...
So in the end: at this time I would not accumulate given the odds and risks involved.
In the first place, we must stress out the fact that CAKE´s correction has been violent and very steep. However, it you look at things from a weekly perspective you might just think that the whole movement down from the ATH is corrective rather than impulsive.
Having said that, reality remains that CAKE is weak and the recent upward momentum is still not enough to consider things calmed.
If you check the Daily timeframe with EMAs, you might see as I do, that the price action looks corrective (upwards) and that there´s high risk of rejection of the (orange) EMA 55, which would result in revisiting recent lows.
Short term, I see a possible triangle that could likely break down after perhaps reaching the $1.60-1.62.
What seems reasonable is to wait for clarity, and only enter LONG when and if the price overcomes EMA55, retests (correction) and begins upward momentum.
This because downward risk seems more plausible to me at this point.
Also remember: 1.50 (Achilles last stand?) is weak. And from there... support is thin...
So in the end: at this time I would not accumulate given the odds and risks involved.
