Market

The Most Explosive Move Of Algorand (ALGO) Is Here for BINANCE:ALGOUSDT by moon333

two wedge patterns:
The price action of ALGO has formed a big falling wedge pattern and within this falling wedge , the priceline also has formed a smaller rising wedge pattern as well. The price action of the leading ALGO was accumulated at the support of the smaller rising wedge pattern and at the same time it was trying to break out the resistance of the bigger falling wedge pattern as well. Finally, the priceline broke out the resistance of the bigger falling wedge and now re-testing the support of the rising wedge pattern. But the volume is not supporting this break out as it is quite low at the moment. If there will be a buying volume while re-testing the previous resistance as support then the breakout can be confirmed and the price action ca turn very strong bullish otherwise it can move down in the same falling wedge pattern and even break down the support of the rising wedge as well.

A big harmonic bullish Gartley pattern:
Previously ALGO formed a bullish Cypher pattern on 2-day chart and produced more than 70% rally after completion of this pattern:

Now this time on the weekly time frame chart, the price action has formed the final leg of the bullish Gartley pattern. There is also 50 simple moving average support in the buying zone. This harmonic pattern is very big than the previous one, therefore, this time the move can be bigger.

The Fibonacci targets of this pattern can be:
Buy between: $0.8718 to $0.6086

Sell between: $1.07 to $1.57

The maximum extent of potential reversal zone $0.6086 can be used as stop loss. Or to minimize the risk we can use the 50 SMA as stop loss. As per the above targets, this trade has a big profit possibility of 157%, and the high loss possibility is 31% and incase we use the weekly 50 SMA as stop loss then the loss possibility is up to 25%, but as the 50 SMA will be moved up the loss ratio will be decreased.

Conclusion:
If the priceline will break down the support of the rising pattern then it can move more down to test the support of the falling wedge pattern on the daily time frame. However, on the weekly time frame, we have a very strong bullish reversal harmonic pattern formed. Therefore, on the long-term there are strong chances that the price action will start it bigger rally than the previous one.

Most Related Links :
Business News Governmental News Finance News

Source link

Back to top button