MagicPoopCannon's Visionary Workshop! (Part 4) ETHEREUM! (ETH)

Hello friends! Welcome to this update analysis on ETHEREUM! For everyone who has been following "MagicPoopCannon's Visionary Workshop" posts, you can now see the incredible value in visionary analysis. I was able to project the inverse head and shoulders pattern, literally before ANYONE else. The value in such projections, is impossible to deny. Let's jump right in. Looking at the four hour chart, you can see that EHT has broken out above most of it's immediate overhead resistance. It has surpassed the 50% retrace, the neckline of the inverse head and shoulders pattern (in pink,) and BTC is currently trading above the downtrend channel. When I saw Litecoin breakout last night, I told you to watch for the other currencies to follow. Litecoin has been the leader of the pack, and now we can see that the others are following it's lead. For now, we want to be sure that ETH closes this candle above the downtrend channel. The next overhead resistance will be at the 200 EMA (in purple) followed by the 38.2% retrace. A few days ago, I placed the inverse head and shoulders target at the 23.6% retrace, even though the depth of the inverse head and shoulders pattern suggests a potential rally above that level (black vertical trendline.) You can see that the 23.6% retrace is a significant support/resistance level, so we will have to see what happens, if/when ETH gets there. This breakout (for educational purposes only) is a technical buy signal. An effective stop could be placed just below the neckline of the head and shoulders pattern. The reason why I would select that level, is because head and shoulders patterns can occasionally produce throwback moves, in which they retest the neckline after a breakout. In this case, a break back below the neckline would be a negative sign, and it would be wise to exit a long position at that point. For now, there is no evidence of a throwback, so we will just have to be aware of it, as we ride ETH higher. The immediate point of focus, is obviously the downtrend channel. We want to see ETH close above it here, as a sign that we will continue to move higher.

This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!

***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***

-MPC loves you-

-JD-

Kommentar:

The original projection...

Kommentar:

ETH has just closed above the downtrend channel.