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ApeCoin price must break this resistance level before a new uptrend can begin

  • ApeCoin price continues to face difficulties moving above a critical resistance level at $13.
  • Two trade ideas identified yesterday have been resolved.
  • A new long opportunity exists – but downside risks remain a major concern.

ApeCoin price action has traded mostly sideways throughout the Saturday session, sticking to a range between $13.80 and $12.40. The bulls attempted to break out Friday but were denied and pushed back down. However, bears were unable or unwilling to capitalize on that weakness. So indecision is now the name of the game.

ApeCoin price develops a strong bullish reversal pattern on its Point and Figure chart

ApeCoin price had two intraday setups on the $0.20/3-box reversal Point and Figure chart on Friday, one long and one short. The long entry triggered and moved up two boxes before returning lower and hitting the trailing stop at break even. The short entry was invalidated because the long side triggered first. Now, a new long opportunity presents itself for ApeCoin bulls.

The hypothetical long entry for ApeCoin price is a buy stop order at $13.20, a stop-loss order at $12.60, and a profit target at $15.20. The trade represents a 3.33:1 reward for the risk. The setup is based on the entry from a Point and Figure pattern known as a Bearish Fakeout.

APE/USDT $0.20/3-box Reversal Point and Figure Chart

The trade is invalidated if the current O-column moves down to $12.20 before the long entry is triggered. A two to three-box trailing stop for ApeCoin price would help protect any profit made post entry.

From an Ichimoku perspective, the whipsaws and indecision make perfect sense. ApeCoin price is inside the 4-hour Ichimoku Cloud. The Cloud represents indecision, volatility, congestion, fakeouts, and a myriad of other negative trading behaviors.

APE/USDT 4-hour Ichimoku Kinko Hyo Chart

In a nutshell, the Ichimoku Cloud is where trading accounts die until there is a clear breakout above the Ichimoku Cloud at $14 or below the Ichimoku Cloud at $12.60, painful trading conditions are likely to continue.

Author

Jonathan Morgan

Jonathan Morgan

Independent Analyst

Jonathan has been working as an Independent future, forex, and cryptocurrency trader and analyst for 8 years. He also has been writing for the past 5 years.

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