Today’s trading spotlight focuses on the cryptocurrency MASK, which saw big volatility and huge volume increase since about a month back. It rose from about $1 at the end of October all the way up to the high $5s at the start of November. This provides a good trading opportunity to profit, if you have the right plan and are patient. At the time of writing the price of MASK is around $3.17s. It is uptrending on the hourly chart with higher lows with a resistance in the $3.60s area, which is support from all the way back in March of this year. The red line in the daily chart below shows this old support, which now might act as resistance.
I have two ideas to trade this, one is long and the other is short. Starting off with the long idea.
In the case of going long, I would wait for the cryptocurrency MASK to break the resistance of $3.60 and then join the trend upwards if it goes beyond. I would set my risk level at the $3.60 line and sell if the price does not drive upwards. As it is a bear market and most people will look to short (I also prefer shorting in this market), there is the possibility of shorts getting caught off guard and getting squeezed out. In that case I would look for a target of $4.20s - $4.30s to sell, as there is the next resistance, which can be seen in yellow in the image below.
In the case of going short of the crypto MASK, I would try to either wait for the $3.60 resistance to hold and use it as a risk level or join the downward trend if the price breaks below the uptrending line (blue).
In case the long idea comes in, be patient, there will be enough time to short on the backside and possibly use the above mentioned $4.30 area as risk level.
Hope this helps to get an idea of the plan(s) and helps with possible executions.
Have a great day you all.
Niklas
This is not financial advice, it is for educational purposes only!
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