FTM → Going to $0.42!? Maximize Profits With This Simple Chart.
FTM has shown strong support on the 200EMA and is currently bouncing for the second time since falling out of the bull channel. It appears we have a clear runway to the Weekly Resistance at $0.42.
How do we trade this?
All of the data points indicate that we should long with the exception of the RSI which shows the price as fairly overbought. However, Price Action is King and I do not prioritize indicators over what the price action is telling me. We shouldn't ignore the RSI completely, but I do not believe that means the price is going to reverse. It likely means we'll have a minor pullback or the RSI will simply keep going up as the price action goes up.
At worst, be ready for a minor pullback. If we see a strong bear candle closing on or near its low, that's when we change our perception of the market conditions. We've fallen out of the bull channel, but we're still above the 200EMA and showing strong support. We should remain bullish until we start to get lower lows and strong bear bars closing on or near their lows below the 200EMA.
Long Entry: $0.31
Stop Loss: $0.275
Take Profit: $0.38
Risk/Reward Ratio: 1:2
1. Fell out of the Bull Channel.
2. Price Bounced on 200EMA twice since bear breakout.
3. Strong Bull Bounce to $0.32.
4. RSI around 60.00, May be a pullback to 30EMA.
5. Look for bounce at 30EMA. Close Gap to Weekly 200EMA.
You are solely responsible for your trades, trade at your own risk!
Find me at TradingView.com/u/TraderEngineering/
If you found this analysis helpful let us know what you think in the comment section below!