Below is a chart from this morning’s pre-market NFTRH update in which we laid out 3 levels to watch for on an over bought pull back. We had noted in earlier updates that would-be buyers should not be chasing the move but rather, dealing from strength, waiting for the first impulsive move to halt and pull back. I took some profits and hedged per that plan, and today released part of the hedge and added back a couple miners.
As you can see, Huey pinged the first support level, which is not my preferred level. That is the gap and SMA 200 at around 130. I think at some point that is going to get addressed. But if this is a real bull move, it may not settle far enough to allow a nice, neat ding of support #2 on this try. That is what markets transitioning from bear to bull do, they taunt you.
So, damned if I know whether it is going to hold here and resume the momo or delve deeper to 130 short-term. But one thing I can do is illustrate the situation as simply as possible so that NFTRH subscribers can depend on the information in their decision making processes. I feel they were well armed ahead of time with respect to the pull back, whether it ends up being a mini (140) or a good, solid drop to 130. I want no part of 120, which would threaten the trend change scenario.
Regardless of what happens, I was able to pick up a miner I wanted 15% off its highs, on this reaction. You’re never going to get it exactly right. But it’s a game of giving yourself the best shot and being patient.
Beyond all of this, we are operating as if a bull market may be beginning (due to the fundamentals you often see written about here), but that is not yet nearly confirmed technically, and will not be for quite some time. So other parameters will have to be respected and NFTRH subs have been and will be kept apprised in this regard as well.
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