Trades from the past week:
1) ProTrade closed for profit overnight: 1.) **Bitcoin ProTrade - Very Short Term [ENTERED @ 596.55 $; CLOSED @ 608.75 for +2.05%]**: We have closed our LONG off of the 596.55 $ level at 608.75 $ for +2.05% profit.
2) ProTrade: **DASH ProTrade [ENTERED @ 0.180; CLOSED @ 205 on 9/13/2016
for +13.89] - We closed our LONG position off of the 180 level at 205 for a 13.89% profit since our entry on 9/7/2016.
Market Commentary (BTC):
Bitcoin simply refuses to budge from this near term 605 - 610 $ trading range which is making us rethink our current ProTrade position off of the 595 $ area.
Ideally we would have seen a move up above 610 $ already, at least to test the OTE short zone at slightly higher levels between 615 - 620 $, however the bulls just do not have enough juice to push through all of the sellers that are capping the market around current levels. While we are not expecting a huge dump to the downside if price does indeed start moving lower, we do think a selloff down into our ST ProTrade buy zone is very possible over the next week or two. For this reason, plus the technical ones explained below, we are taking off the VST PT long in order to preserve capital for more favorable levels.
Given that we have been focused on the medium to long term forecast over the past few days, today we want to revisit the 4-hour chart for a look at the shorter term technicals. First off, we can see that price is still stuck between supply and demand areas, and is now sitting right on top of the volume profile PoC (a critical level). Also notice that SCMR painted a bearish pivot candle yesterday for the first time in a few weeks although we are now back to neutral, and dynamic support and resistance both continue to elude the market during this time of stagnation.
Moving on, we see ample evidence that a pullback is becoming more likely the longer we remain in this tight trading range. Willy is very close to officially overbought despite stagnant price action, RSI continues to chop around in no man's land, the Stochastic is rolling over out of overbought conditions, and PPO is neutral but is almost giving us a sell signal already. Additionally, price is now below the 100-period SMA while the near term EMA's continue to flatten out, and the A/D line has taken a slight hit to the downside for the first time since early last week.
While we are not seeing anything in the way of immediate sell signals on the charts just yet we do think there is still some work to be done to the downside prior to the upside resolution, therefore we have closed our VST ProTrade long at 608.75 $. Why? There is a massive volume profile notch sitting right around where the OTE long zone is currently, and this is also a region where the pivot area and the 200 SMA will both provide additional support (confluence area). Although it may seem like a substantial dump on this lower timeframe, a move back down into the 580 $ area would barely be noticeable on most of the charts we showed yesterday in the BBB Report. This is why we feel comfortable waiting for the market to come to us rather than chasing the market higher or risking capital on a risky short with a mediocre risk/return profile.
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