By looking at the 4-hour chart, we can see a pennant pattern. If the price breaks the resistance line of this pattern, we’ll get a signal confirming further upward movement. The pennant will be realized as a continuation chart pattern and we we should expect for price movement to the target zone between the 6700.00-6900.00 levels.
Pending orders for buy can be placed at the 5750.00 level. Stop orders must be placed below the pennant pattern at 5400.00 level. The main profit target is 6500.00 level. This trade looks rather risky, because the MACD lines and ADX line have climbed too high, which means we can face a short term retracement. If you don’t want to take part in such risky trades, you should skip this signal or open long trades with less volume.
Alternative variant: if the price breaks the support line of pennant and drops below the 5500.00 support level, we should expect for further downward movement to the support zone. It will give us a new trading opportunity. If you don’t use leverage, the recommended trading volume for this trade is up to 10% from your deposit.
Profit Targets: 6500.00
The trading signal is based on the Poloniex chart.