Decred (DCR) falling back into $25-30 range after touching $36 target
After Decred's 50% gain last week from $23 to $36, DCR has since failed to continue its momentum instead falling back under $30 dollars this week. Last week I had marked $36 as a target for DCR, but had warned it was likely to return into a $25-30 range after meeting this resistance. Here's some technical analysis to explain why.
As can be seen above, while breaking the resistance trend (in green), DCR struggled to close above these levels, instead returning to the original triangle. Yesterday Decred broke out again, but only to $32, meeting sellers to reduce its price temporarily near to $28.
For anyone who had taken my wide trade recommendation of $22.50 - $27.50, then the recent price range of $28-36 should be quite satisfying. However, while DCR sits at $30 it might be worth booking any profits you missed at the second target of $36.
DCR now looks ready for further correction downhill so it's worth remembering it's shallow but reliable 3 -month support trend. While a good place to buy in on, it's not a good level to be taken to. Instead though, DCR may now only correct to $27.50, instead of it's monthly low, in order to challenge the next target of $42.
Trade recommendation: $25-$27.50
Remaining targets: $42 and $52
Does the trade have any stop loss?
Yes, it should always have a stop loss! Where that is depends where you got in in my opinion.
Getting in at $25, stop loss of $23 should do it, but if you're going for $27.50 then you'd probably need a stop loss to at least $25, if not $24. If you manage to get the lowest point (say $23), then you should move your stop loss to your buy price asap, as any lower would suggest a bullish retreat.