Hello Riders, in this edition we are going to take a general look at the current state of the nasdaq, which we know dictates the behavior of cryptos for now.
We will also be updating our famous lagging coins analysis, which has been extremely profitable these past few weeks.
In summary, we see the nasdaq approaching the overbought zone, in the midst of an uptrend, so if you are considering buying just now, lock in your stop loss.
I would also not look to short as the daily macro trend is clearly positive.
Perhaps the best strategy this week is to do nothing , let the price settle down a bit and lookf for daily chart orange M signals on our Rider Algo #1 indicator, after that the bounces will be stronger.
However, meanwhile we can find stocks and coins that are still close to support with a safer risk reward ratio in case we have a short term correction
About the NASDAQ, we can note the following:
1. It is in a clearly positive trend on the daily chart. (bull signal, price above rider band and gold rider band)
2. It is approaching an overbought zone and an important resistance zone.
This means that in order to continue to grow, you will probably have to correct and test supports during this or next week or at least move laterally while the rider band catches up.
If they decide to buy shares, for the long term it is a very good bet, for the short term they have to be prepared for volatility and even a possible correction.
Nadaq reference image #1
Nasdaq reference image #2
I have said plenty of times in the past that the best time to buy and DCA is when we are in the dark red zone and there are signs of a possible rebound, risk benefit is the best time. Right now we are in the yellow zone which is usually the most volatile
This has had a much more timid recovery than the NASDAQ or some altcoins on a percentage basis. In the short term we can see how 3 perfect Take Profits signals have appeared almost consecutively, which does not bode well for the bulls.
This could be interpreted as Bitcoin hoping that stocks will not be rejected even more so now that they are close to overbought. It can also be interpreted that investors went for the safest in this rebound (stocks) and the most daring went for the altcoins (I can tell this because the altcoins graph looks different from the bitcoin one, with less take signals profits)
Another sign of indecision is that we see almost positive money flow, close to bursting, but not yet.
In the short term, if the price goes down, there are 2 support areas in the ranges of 22.5 to 23.6K and the most important of all in 20 to 22K.
What To do?
- If you bought in 20-22K without leverage, at this time I would hold it.
- If you are considering buying now without leverage, do a DCA strategy, buy a little, if it falls buy more on support.
- For trading in lower timeframes, be on the lookout for bounce signals if we approach daily supports, it could be a great opportunity to benefit from a bounce using controlled leverage.
Let's try to find some promising stocks and coins with a safer risk-reward ratio versus the ones that already pop.
SOL still looking good. Still inside a consolidation zone, will buy more around 40USD.
2. Algo, very similar to SOL. a little bit more boring.
3. Audio, similar.
4. FTT, Rider Band is bullish, not much resistance if it pops.
5. SAND, this one looks very interesting, very tight acummulation zone, perfect for longs and shorts depending on where it goes first.
6. AZERO, would be interesting to see if this support is tested succesfully, if it does it will be ready for next leg up. look for Orange M signals first.
7. HTR, this one is testing band on the upside. still inside accumulation zone.
PG, This one is a very safe bet for the long term, recent bull signal.
Looking for longs if it holds the 100USD. Similar to Nvidia which is now at volume control zone.
This one looks promising, recently closed above a massive resistnace zone. Very little resistance ahead.