FTM → A High Profit Opportunity! This Analysis Breaks it Down.
Fantom is marching forward in a bull channel, breaking previous resistance and setting its sights on $0.34. It looks like we have a clear shot to the next resistance level, but is it safe to long now?
How do we trade this?
The bulls have several data points on their side; a bull channel, breaking of previous resistance, successfully testing that resistance as support, but is that enough to enter a long? Not yet! What we need now is a bull confirmation candle on this second support test. The last hourly candle just closed above support a few minutes ago, we need to hold this price and close a strong bull candle to justify a long.
If FTM delivers, set a protective stop below the "New Support" line and set a take profit at a 1:2 Risk/Reward ratio. The next resistance level on this timeframe is just below $0.35, so it's reasonable to take your profits before then.
Also, keep an eye on Bitcoin as a leading market indicator, it's into new high territory for this bull run and we need to be vigilant about reversal candles appearing. If one does, be prepared to change your bias to short!
Long Entry: $0.325
Stop Loss: $0.319
Take Profit: $0.34
Risk/Reward Ratio: 1:2
1. Bull Channel, Bias to Long!
2. Broke out of Previous Resistance, Now Testing Support.
3. RSI at 56.00 and below Moving Average, Bias to Short.
4. Wait for a Bull Confirmation Candle Above Support.
5. Long 1:2 Risk/Reward, Stop Loss below New Support.
You are solely responsible for your trades, trade at your own risk!
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