After quadrupling in price, CATS has pulled back to a confluence of support: breakout trendline, .618 retracement level, 200 day EMA
The breakout trendline formed over the course of approx. 1 year, was tested 4 times as resistance prior to the breakout and was tested 3 times during the consolidation period between May and June.
I'd enter a trade on any dip from here given the up-curling 20 and 50 EMAs, I expect the 20 EMA to push prices higher and given the initial move off the lows and deep pullback that followed, I anticipate the next move could be a face ripper. Specifically, I'd look for any broader market weakness to knock price down to the 50% retracement where I would look for support and entry.
The breakout trendline formed over the course of approx. 1 year, was tested 4 times as resistance prior to the breakout and was tested 3 times during the consolidation period between May and June.
I'd enter a trade on any dip from here given the up-curling 20 and 50 EMAs, I expect the 20 EMA to push prices higher and given the initial move off the lows and deep pullback that followed, I anticipate the next move could be a face ripper. Specifically, I'd look for any broader market weakness to knock price down to the 50% retracement where I would look for support and entry.
Commentaire:
Two consecutive days showing support off of the .5, long wicks are a sign of strong support
