KNC, 10 Jan. An epic Cup & Handle.
Kyber Network started trading on major exchanges at $1.88 in September 2017. It soon went to $6, then crashed to $0.11, and recently began to oscillate roughly between 1 and 2 dollars.
On the weekly chart (not the one above) we see a multi-year cup & handle pattern. More importantly, price has reached a point of the handle where we could position ourselves for a (potentially) epic move.
Let’s take a look.
Elliott:
We are looking for a wave (v) of C (in blue) to complete. If correct, this will bring KNC to $1, if wave 5 is equal to wave 1 in length.
Geometry:
Price got rejected at the channel median. The channel bottom provides support for what could be a spring in a Wyckoff re-accumulation.
Oscillators:
Stochastic is overbought and due to retrace. MFI is strongly positive. RSI shows a slight bullish divergence.
Volume:
Volume shows frequent (and quite extreme) demand spikes in a low volatility phase, a very bullish signal of accumulation.
How to trade it:
The idea is to trade a multi-month breakout, starting from the upper boundary of the channel. 3 Levels provide excellent risk-reward ratios to gradually build up our long exposure:
- The channel bottom at 1.1
- 61.8% retracement and .5 Fib of the channel at 1.3
- A higher high at 1.6, in which case the EW count is invalidated and the correction could be complete.
The idea is likely invalidated if KNC breaks below 0.97, which is the 78.6% retracement of the previous wave on the weekly chart.
On the weekly chart (not the one above) we see a multi-year cup & handle pattern. More importantly, price has reached a point of the handle where we could position ourselves for a (potentially) epic move.
Let’s take a look.
Elliott:
We are looking for a wave (v) of C (in blue) to complete. If correct, this will bring KNC to $1, if wave 5 is equal to wave 1 in length.
Geometry:
Price got rejected at the channel median. The channel bottom provides support for what could be a spring in a Wyckoff re-accumulation.
Oscillators:
Stochastic is overbought and due to retrace. MFI is strongly positive. RSI shows a slight bullish divergence.
Volume:
Volume shows frequent (and quite extreme) demand spikes in a low volatility phase, a very bullish signal of accumulation.
How to trade it:
The idea is to trade a multi-month breakout, starting from the upper boundary of the channel. 3 Levels provide excellent risk-reward ratios to gradually build up our long exposure:
- The channel bottom at 1.1
- 61.8% retracement and .5 Fib of the channel at 1.3
- A higher high at 1.6, in which case the EW count is invalidated and the correction could be complete.
The idea is likely invalidated if KNC breaks below 0.97, which is the 78.6% retracement of the previous wave on the weekly chart.
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