SOL Pre-Festival Strategy Sharing (5.30)
Good afternoon everyone. First of all, I wish you all a safe and healthy Dragon Boat Festival in advance. Today is the last day to watch the market before the holiday. I don't want to say much about the overall market; it's just a matter of washing out the longs and shorts back and forth. Moreover, the overall market is still within the structure, and the bullish structure has not been broken, so it is still possible to trade long around the low levels. The intraday rebound seems a bit weak, and we need to trade long at key support levels for a slightly higher win rate!
From the 4-hour chart of SOL, the last box oscillation was around 140-156. After breaking out, it reached a peak of 187 and then formed an M-top, which is a double top pattern, and then started to decline. The last spike was at 159, after which it closed positively and began to slowly rise. This time, the spike is also at the same 159 position, but the hourly chart did not close positively and is still in a downward trend. It is unreasonable to trade long at the 159 support level this time. The 1-hour rebound at 165 encountered resistance again, unless a double bottom forms, otherwise, we should primarily rely on limit orders!
On the price levels, it is recommended to place limit orders to go long around 154-157. It could be an entry point upon the spike. Currently, the market is in a tug-of-war between bulls and bears, with the bears slightly ahead. If this 4-hour chart can hold and close positively, we could see higher levels, even breaking the previous high, because it is very likely to form an M-top and a W-bottom structure. If it breaks the bullish-bearish boundary this time, it will continue to oscillate around 140-150, and then the bearish win rate will be higher. This needs time to verify. Our target is around 172-180, and we can take profits in batches!
