Welcome to a brand new trading week, fellas!
Start it out by looking at these potential long-term reversals and trend plays on bitcoin, Meta, and EUR/CAD.
Meta Platforms, Inc (FB): Weekly
Caught a piece of the action on Meta last week?
That was quite a bloodbath for Zuck and his billion-dollar net worth, but this could be a prime setup for you and me!
You see, there’s still a chance Facebook fans could boost the share price up again, as support at the 61.8% Fib and 200 SMA dynamic inflection point seems to be holding so far.
Technical indicators suggest that the selloff might be over soon since the 100 SMA is still above the 200 SMA while Stochastic is closing in on the oversold region.
If the Fib retracement level or the long-term rising trend line holds, we might just see a rebound back up to the swing high eventually.
BTC/USD: Weekly
Bitcoin (BTC/USD) Daily ChartBitcoin (BTC/USD) Daily Chart
Bitcoin is pausing from its slide as it tests a major support area around the $40,000 mark. Will we see more green soon?
Moving averages are suggesting so, as the 100 SMA is increasing its lead over the 200 SMA to reflect strengthening bullish momentum. The 100 SMA is also pretty close to a shallow rising trend line connecting the latest lows, adding to its strength as a floor.
At the same time, Stochastic looks ready to turn higher from the oversold region, with a bullish divergence to boot!
Many say that bitcoin has to clear the next major psychological hurdle at the $50,000 mark to confirm that the uptrend is gaining traction, so I’d watch out for that.
EUR/CAD: Daily
Here’s another potential reversal play!
The pair has formed a double bottom on its daily time frame and is now testing the neckline at the 1.4600 handle after forming two very bullish candlesticks.
Will it form another long green candle to confirm an uptrend?
If it does, brace yourselves for a rally that’s the same height as the chart formation. That’s roughly 400 pips yo!
However, Stochastic is nearing the overbought zone to signal exhaustion among buyers while the 100 SMA is still below the 200 SMA. The pair is also testing the dynamic resistance at the 200 SMA, which might be the line in the sand for a continuation of the selloff.
