The recent performance of Shanzhai BCH has been impressive, with prices strongly rising and currently approaching the upper resistance zone of 508-511. The upward momentum has somewhat weakened, and a short-term correction may be on the horizon. Pay attention to the support zone of 498-490 below.
Technical Analysis
1. Candlestick Pattern:
- Recently formed a "Red Three Soldiers", indicating strong upward momentum and active buying.
- A "Doji" appeared near the high of 516.66, suggesting an increased likelihood of consolidation and adjustment.
2. Trading Volume:
- During the rise to 516.66, trading volume increased significantly, then fell back to stable levels, indicating weakened momentum.
3. Moving Averages (MA):
- MA7 continues to rise, positioned above MA30, indicating a short-term bullish trend.
- The medium-term trend is gradually strengthening, and attention should be paid to the strength of subsequent breakouts.
Operational Suggestions
Operation: Consider scaling short in the 508-511 range.
Resistance Level: 519, stop loss to confirm continuation of upward target.
Support Level: 498-490 as potential target for correction.
