Recent price action in the Nasdaq Composite has been choppy and indecisive, but the tech-heavy index is stealthily forming a bullish chart pattern that could spark a new rally.
We have been scanning for the best crypto swing trade setups based on relative strength and bullish chart patterns.
Below are annotated charts of five top crypto swing trade setups we are stalking for potential buy entry in the Morpheus Crypto portfolio now:
This price action created an important bullish reversal pattern on the daily chart of $BTC.
When an uptrending crypto has a multi-week pullback and then forms a bullish reversal bar, it often marks a significant low of the pullback.
When a crypto is so strong that it holds up even while $BTC/$ETH are selling off, it is typically the first to explode higher when the broad market eventually bounces.
That’s what we constantly scan for with the Morpheus relative strength trading strategy: The best bullish altcoin charts with top relative strength to Bitcoin ($BTC) and Ethereum ($ETH).
$TSLA closed with a bullish outside day and reclaimed the 20-day ema. The recent pullback looks to be forming the handle portion of a 42% deep cup with handle pattern.
The buy stop entry is over Wednesday’s high with a protective stop beneath the three-day low.
The S&P 500 joined the Nasdaq Composite below the 50-day MA this week which puts the timing model back in sell mode.
For the model to return to buy mode either the S&P or Nasdaq must close back above the 20-day EMA.
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The S&P 500 joined the Nasdaq at falling below its 50-day moving average.
Our game plan is to sit tight and manage existing positions.
When a cryptocurrency approaches an important, closely watched level of support such as a 50-day moving average, it is not uncommon for the price to undercut the actual support level before reversing higher.
Many traders and investors set their stops tightly below obvious support levels, and those stops often get run before the technical support does its thing to reverse the price higher.
Commodity-based stocks continue to lead while tech struggles.
Oil, coal, gold, and agriculture closed out last week’s trading with bullish action.