CRO (Cronos): Falling Wedge Breakout
2024-08-10

Trade setup : Price is in a Downtrend, however, it had a bullish breakout from Falling Wedge pattern, which could signal at least a temporary bullish trend reversal with near-term upside potential to $0.10. We would enter on breakout retest near $0.08. Stop Loss at $0.07. This is a riskier trade setup because it’s a trend reversal not a trend continuation setup. It’s against the overall downtrend. Learn to trade breakouts in Lesson 7 and Risk Management in Lesson 9.

 Patterns :  Falling Wedge  Usually results in a bullish breakout. When price breaks the upper trend line the price is expected to trend higher. Emerging patterns (before a breakout occurs) can be traded by swing traders between the convergence lines; however, most traders should wait for a completed pattern with a breakout and then place a BUY order. Learn to trade chart patterns in Lesson 8.

 Trend : Short-term trend is Neutral, Medium-term trend is Strong Down and Long-term trend is Strong Down.

 Momentum : Price is neither overbought nor oversold currently, based on RSI-14 levels (RSI > 30 and RSI < 70).

 Support and Resistance : Nearest Support Zone is $0.075, then $0.066. Nearest Resistance Zone is $0.10, then $0.12.