Long
Vechain double bottom pattern in formation
Yesterday VeChain (VEN) closed above 0.000458, the 0.5 Fibonacci level, and the blue line, forming a Double Bottom Chart pattern.
A double bottom describes the drop of the price, a rebound, another drop to the same or similar level as the original drop, and finally another rebound. The double bottom looks like the letter "W". The twice-touched low is considered a support level.
There's still, as resistance, the red line, which was pierced since yesterday, and the 0.23 Fib level, at 0.000491.
RSI is almost neutral in the daily chart, pointing at 47. Volume is increasing since yesterday, configuring a condition for the double bottom. MACD still is in a negative zone, but slowly moving above zero.
A conservative buy zone can be setup at 0.00045 below the red line. Another trading strategy would be to wait till VEN breaks 23% Fib level and sell at the yellow line. We can wait and see if VEN can break the yellow line and that indicates that the double bottom pattern is confirmed. That is, once the closing price is at the 0.00054.
A double bottom describes the drop of the price, a rebound, another drop to the same or similar level as the original drop, and finally another rebound. The double bottom looks like the letter "W". The twice-touched low is considered a support level.
There's still, as resistance, the red line, which was pierced since yesterday, and the 0.23 Fib level, at 0.000491.
RSI is almost neutral in the daily chart, pointing at 47. Volume is increasing since yesterday, configuring a condition for the double bottom. MACD still is in a negative zone, but slowly moving above zero.
A conservative buy zone can be setup at 0.00045 below the red line. Another trading strategy would be to wait till VEN breaks 23% Fib level and sell at the yellow line. We can wait and see if VEN can break the yellow line and that indicates that the double bottom pattern is confirmed. That is, once the closing price is at the 0.00054.
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