The ACE strategy highlighted in the previous round has now successfully captured its profit potential. The incremental and contrarian signals are in sync, and the market structure for $LAB is sending a signal. The daily, four-hour, and one-hour charts are all below their moving-average systems, and the bearish alignment remains intact.
The price has rebounded to around the daily EMA50, an area where positions were heavily accumulated previously, so selling pressure is likely to re-emerge here. In terms of volume, the rebound has come on declining volume, with no fresh capital stepping in to absorb the selling. The one-hour RSI has indeed entered oversold territory, so a short-term bounce is possible. But in a downtrend, such bounces are usually opportunities for bears to add to their positions, not signs of a reversal.
Structurally, as long as the price fails to reclaim the daily moving averages decisively, the downward momentum should continue. I favor looking for short entries after the rebound loses steam, aiming to capture the next leg of the prevailing trend.
🔴 Trade direction: Short
📍 Entry range: 0.0414463 – 0.0417978
🛑 Stop loss: 0.0449784
🎯 Take profit 1: 0.0391050
🎯 Take profit 2: 0.0374268
🎯 Take profit 3: 0.0349096
Behold the vastness of mountains and seas; discern the market's subtle shifts.
Trade alongside Uncle Xiong, and witness the gains and losses of the world.
#LAB
Click below to trade 👇
The price has rebounded to around the daily EMA50, an area where positions were heavily accumulated previously, so selling pressure is likely to re-emerge here. In terms of volume, the rebound has come on declining volume, with no fresh capital stepping in to absorb the selling. The one-hour RSI has indeed entered oversold territory, so a short-term bounce is possible. But in a downtrend, such bounces are usually opportunities for bears to add to their positions, not signs of a reversal.
Structurally, as long as the price fails to reclaim the daily moving averages decisively, the downward momentum should continue. I favor looking for short entries after the rebound loses steam, aiming to capture the next leg of the prevailing trend.
🔴 Trade direction: Short
📍 Entry range: 0.0414463 – 0.0417978
🛑 Stop loss: 0.0449784
🎯 Take profit 1: 0.0391050
🎯 Take profit 2: 0.0374268
🎯 Take profit 3: 0.0349096
Behold the vastness of mountains and seas; discern the market's subtle shifts.
Trade alongside Uncle Xiong, and witness the gains and losses of the world.
#LAB
Click below to trade 👇