IOTA buyers wait for clear bullish entry, anticipating a 70% breakout
|- IOTA price had rallied more than 23% since October 27th, creating bullish conditions when most of the market was facing intense selling pressure.
- A prolonged consolidation event has lasted for over two months.
- Nearby long and short opportunities exist, but current market sentiment and structure favor the bulls.
IOTA price is stuck inside the Cloud. The Cloud is a miserable place for any trader to participate in. One of the benefits of the Ichimoku Kinko Hyo system is that it tells traders when not to trade – and inside the Cloud is one of those times.
IOTA price prepares for a move above the Cloud, bulls and bears indecisive
IOTA price action has finally shown some evidence that the two-month-long consolidation by end soon. Trading inside the Cloud for the past five trading days builds pressure for a move out of consolidation. The Cloud represents volatility, indecision, whipsaws and misery. It is the place where trading accounts go to die. However, the Cloud is the final resting place before new trends begin or old ones resume.
Bulls eye a hypothetical long entry above the Cloud at $1.52. A daily close at or slightly above $1.52 would confirm IOTA price in an Ideal Bullish Ichimoku Breakout entry. The stop loss would be slightly below the Cloud at $1.38 with a projected profit target at $2.52 – slightly below the all-time high. A trailing stop would help protect any implied profits made due to a swift move above the Cloud.
IOTA/USD Daily Ichiumoku Chart
The long idea is invalidated if the short entry triggers.
Significant support for IOTA price exists between$1.30 and $1.35. The Tenkan-Sen, Kijun-Sen, Senkou Span A, and 2021 Volume Point Of Control all reside within that price range. If support fails in that price range, then a potential short setup develops with an entry at a daily close near $1.19, a stop loss at $1.32 and a profit target at $0.79. A tight trailing stop would help limit any potential profit, especially as dip buyers may step in very soon after the entry is triggered.
IOTA/USD Daily Ichimoku Chart
The short idea is invalidated if the long entry triggers.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.