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NEARING A HEAD AND SHOULDER PATTERN

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In this idea, I'll tackle the bullish pattern, inverse head and shoulders forming for BINANCE:NEARUSDT. Currently, it is sitting on the neckline, and I've been monitoring this coin two days ago. I'm now lending this idea as it could have a potential for a breakout anytime soon. More details for the technical analysis for NEAR in my idea threads below. Stay tuned :)

註釋

This is my setup for NEAR for a possible breakout play. I will consider the price to first have a good volume for confirmation as it appears to be in a sideways movement. Since the neckline is diagonal, I would add alert on the nearest higher high and that would be $7.65 but you could also add an alert on the trendline using the alerts function in this platform.

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If it breaks out at $7.65 possibly it could confirm the breakout thus, activating the fbullish pattern. On another hand, for my target profit area, I would consider $8 dollar or $8.002 because of its logical resistance as well as a key Fibonacci trendline referring to my Fib retracement.

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Is it time to buy the coin. Not yet as we wait for the confirmation. Now, on the other note if considering a breakdown play for the coin. I plotted the current support for the coin as it shows instances of stabilizing the upward trajectory of the price on a day trading timeframe. For a breakdown, I would consider my take profit at $6.899 as it is near the key Fib line and a trendline for NEAR. Below summarizes the possible breakdown play setup.

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IT'S A WAITING GAME FOR NEAR AND WE COULD GET A MOVEMENT SOON.

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Currently saw a long doji candle indicating a volatile movement for NEAR. I suggest avoiding trading this coin until observing an organic move for the price and provide updates this thread here if I could see one.

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Entered upon the bounce and a confirmation move of the coin. Set take profit area at around $8 range.

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Partial SL Hit set below the current diagonal support

交易結束：達到停損點

SL hit hours ago upon the confirmation of a breakdown on an hourly basis as observed some correlated selling from other coins as well.

To journal the offsides of this trade, I was heavily favored the strong neckline upon the bounce. It is also essential to check the hourly timeframe for the entry confirmation since the percentage of win is above 5%. I did technical charting on the crypto exchange itself, and it already hit the $8 take profit area during the volatility move of the coin (the long doji candle shown in the past threads).

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If you entered a short trade with NEAR, I labeled the possible support at $7 which could act as the past resistance acting as the current support.

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Can we still see a massive breakout? Still possible. We wait till we observe if there is a continuation of a sideways move that could breakout on the neckline once again and a confirmation on an hourly basis. Otherwise, reversal could happen if it breaks out the plotted major support and possibly rejecting the bullish pattern.

註釋

Approximately 3 days, I plotted the major support for the coin and saw currently a sideways move near the trendline, I will wait for the coin to confirm a breakdown on the trendline. This could also just continue to move sideways (even breaking down) since it's a non-trading day as of this writing. Potentially, the plotted Fibonacci lines could act as a support in case it happens.

I highlighted the Fib lines 382 and 5 levels as the possible support but also take note of the possible neckline that could activate as the double top pattern, a bearish movement that could further support a major breakdown.

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Just did charting for today and observed a double top breakdown for NEAR.

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For those who have short positions for NEAR. Here would be the possible support of the coin, used Fib lines to identify the next support and in my view a bullish fractal play pattern can play out. If the dump continues, the next support could be a range between 1.618 fib fractal and 786 Fib key trendline (highlighted in blue).

註釋

Price currently on the 1.236 Fib level and it could just move sideways for now. Be mindful, if you missed out on NEAR, it is not ideal to do positions on a day trading perspective as it had a breakdown on its neckline. We wait if we could saw continuation or reversal patterns or a slight pump near or on the neckline that could act as a new resistance.

註釋

Breaking down the price movement for NEAR on the past day, the coin had touched on the range between 1.236 Fib extension and 618 Fib line before executing the price breakout and currently touched on the first labeled resistance (now as past resistance) and currently resides on the latest diagonal resistance.

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Full picture of the week long resistance for NEAR.

On a day trading perspective, possibly a double top bearish pattern could play out. Add alert on the price of 7.126 for a short play for NEAR and highlighted two take profit areas which are Fib lines of 0.382 and 0.5 with its history of being a key trendline for the coin

I would also like to point out that price volatility can happen in the coming days because of the economic activities around especially the CPI report so let's be aware and plan our trades.

註釋

Entered a short trade for NEAR as the coin had a breakdown on the neckline of the triple top pattern. Eventually it reached our stop loss area, and the setup was invalidated from an observed volatility move as currently the price appears to reach the resistance once again. Hopefully you're safe out of this trade. And remember protective stops is a WIN.