Today’s trading spotlight deals with the cryptocurrency Mask, which I covered in the past. You can see my older article on Mask via the following link: https://medium.com/coinmonks/trading-spotlight-cryptocurrency-mask-2baea384f46a 

Mask is still up a lot from its initial run at the end of October and it might close to the recent high at around $5.50. The long support from the start of 2022 around $3.70 might act as support again. You can see it as the red line in the daily chart of Mask below. It is quite hard to see in this image, but the price is above $3.70 at the time of writing this article.

So the first look always goes at the daily (or even weekly) to see the big picture. The next look is going into a smaller time frame, where I use the 1 hour chart mostly. Below you can see the support (green) and resistance (red) lines in the short term of the cryptocurrency Mask.

The resistance line is at about $4.20, which will also be the risk level in the following trade plan. The idea is to go Short close to the $4.20 level, so basically entries in the $4 - $4.20 price area would be ideal. I see this most likely as a dead cat bounce, before it fades further given the overall downtrend (yes, still down). I would look for Mask to set a top there and look for a lower high before entering, which would be the safer play in my opinion. Avoid the frontside to not get blown up before the easier and more relaxed backside comes. There is the possibility this goes beyond $5, sets a new high and blows all frontside shorts out of the window.

I hope this helps you get my trade idea. 

Have a wonderful day!

Niklas

This is not financial advice, it is for educational purposes only!

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