Trading in CFDs and generally leveraged products involves substantial risk of loss and you may lose all of your invested capital.
Trading in CFDs and generally leveraged products involves substantial risk of loss and you may lose all of your invested capital.

Market Analysis

Bitcoin has formed a double bottom, prepare for a strong bounce

March 12, 2018

Bitcoin has formed a really nice reversal pattern, good opportunity to buy for a rally. 

Buy above 9394. Stop loss at 8380. Take profit at 11713. 

Reason for the trading strategy (fundamentally):

The big news event is Tennessee Senate moving ahead to block the trustees of public, post-retirement benefit funds form making investments into cryptocurrencies. The bill if passed, would mark the first time public trustees would be banned form investing in cryptocurrencies for retirement funds. This is a big hit to the cryptocurrency world as it could spark the beginning of other states taking on similar actions.

Reason for the trading strategy (technically):

Price has formed a strong double bottom reversal with breakout level at 9394 (Fibonacci retracement, horizontal overlap support, breakout level) and we hope to see price shoot all the way up to 11713 (horizontal swing high resistance, Fibonacci extension). We do have to be cautious with our intermediate short-term target at 10289 (Fibonacci retracement, horizontal pullback resistance).
Stochastic (89,5,3) is seeing strong support above 4.6% and is rising nicely with good upside potential.

 

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About the analyst

Desmond Leong provides technical analysis to the largest banks, hedge funds, and brokers whilst coaching hundreds of aspiring traders. He specializes in providing actionable and accurate analysis that utilizes the most advanced theories.


Disclaimer: The publication of Analytics is a marketing communication and does not constitute investment advice or research. Its content represents the general views of our experts and does not consider individual readers’ personal circumstances, investment experience, or current financial situation. The Analytics is not prepared in accordance with legal requirements promoting independent investment research, and Exness is not subject to any prohibition on dealing before the release of the Analytics. Readers should consider the possibility that they may incur losses. Therefore, Exness is not liable for any losses incurred due to the use of its Analytics.

 

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