IOTA: IOTUSD Downtrend Broken
Updated
IOTA IOTUSD
The rally yesterday fizzled out from the upper parallel of a newly forming continuation pattern. Using a trailing stop under the
day's little dynamic that had underpinned the rally from inception at least meant escaping the worst of the ensuing
decline by triggering an exit at around 4500 but it was a poor call nonetheless. If you reversed short on the break below
4361 there is at least a 180 or so point profit still to be had, but so far it has not reached the expected downside
target. It's trying to flip back up here but is still being held back by the upper parallel that controls the wave. Still
vulnerable whilst unable to break and hold above this parallel. Suggest using a sliding stop above this parallel for
shorts. If broken to upside look to close down and reverse for small 100 or so profit -
The rally yesterday fizzled out from the upper parallel of a newly forming continuation pattern. Using a trailing stop under the
day's little dynamic that had underpinned the rally from inception at least meant escaping the worst of the ensuing
decline by triggering an exit at around 4500 but it was a poor call nonetheless. If you reversed short on the break below
4361 there is at least a 180 or so point profit still to be had, but so far it has not reached the expected downside
target. It's trying to flip back up here but is still being held back by the upper parallel that controls the wave. Still
vulnerable whilst unable to break and hold above this parallel. Suggest using a sliding stop above this parallel for
shorts. If broken to upside look to close down and reverse for small 100 or so profit -
Note
MOFO. The break below 4361 which triggered the original short proved insurmountable for Iota - it did spike as high as 4420 but the chart above shows that the real pivot point is centered around the 4361 level. So we would have been stopped out on the short anyway. Lucky at that point to get away with 100 points profit on the last short (by holding we would have got stopped out higher, lost a few pips on the original stop above the break level at 4361 and then watched as it broke ever lower from there. So not only the weak bears were wrung out in the counter rally, but some strong ones with stops quite a way above the break level also had their stops whipped - before it turned lower again. (Newer readers take note of this cruel, almost vicious price action. It really sucks. But it happens all too often at tops and at bottoms) Bad enough to lose the real play in this short in the counter rally but at least we took 100 points rather than lost them. Still sucks though.Now Iota is back testing resistance and this pattern, since the break 41243 ha flipped Iota into is bearish terriitory again. It hasn't finished it's descent and should fall away from here back to 35697 - if still long it's a good chance to exit and buy back cheaper later
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