Short

VRC Analysis - Short Term Bullish Trend

Updated

After a bullish 'Cup and Handle' pattern was completed on the 3rd March, VRC appeared to find resistance around a long-term resistance trendline before bouncing off an shorter-term upward support trend line. VRC broke the long-term resistance later on the 3rd March and jumped 20-25% before further increasing after a temporary lull to hit the upper long-term resistance at around 13000 sats. With a gradual descending trend, VRC formed a 'Bullish Pennant' pattern. Meanwhile, RSI gradually decreased to the low to mid- 40s while the MACD suggested bearish divergence. The Bollinger Bands indicated reduced volatility on the 5th March as VRC approached the resistance of the Bullish Pennant. WIth the RSI now in the low 40s and MACD suggesting a bullish divergence crossover, it rallied with a 30% jump before reaching once again the long-term resistance.
VRC appears to be in another downward trend forming yet another 'Bullish Pennant' pattern bouncing off a long-term resistance line that transitioned into a new support line. With the long-term resistance line come support converging with the short-term support line of the bullish pennant, the Bollinger Bands are once again converging suggesting reduced volatility. RSI hovering around 40 into the high 30s as the MACD continues a smaller magnitude bearish trend but converging to what may be another bullish divergence crossover.
The repeating bullish pennant pattern, coupled with the strong support and favourable Bollinger Band, RSI and MACD indicators suggest that VRC should make another run, potentially up to around 12200-12500 sats (~30%) if it reaches the long-term resistance once again.

Note

Bought at 9770 sats. First target at 'Bullish Pennant' resistance and 0.618 fib at 11060 sats (~12%). Second target 12100 sats corresponding to 1.0 fib and just below long-term resistance line (~24%).

Trade active

Note

Currently bouncing around the long-term resistance come support but wiggle room near the bullish pennant support. BTC has falling 5-8% while money is exciting crypto with the overall market cap dropping around 5% over the last couple of days making it difficult for VRC to gain traction.
Still a bullish pattern approaching the pointy end of the 'Bullish Pennant' with two levels of support and resistance coming from the bullish pennant. If VRC falls bellow the longer-term resistance come support line, this trade may fail.

Note

Well VRC bounced off the strong support and broke the bullish pennant resistance to reach 10496 sats before hitting resistance off the off the broader-scale bullish pennant. Neither of my sell orders at ~12% and ~24% were triggered due to underestimating the broader bullish pennant resistance.
Good news is that the broader bullish pennant pattern is converging and the jump today has not had a huge affect on the RSI, MACD and Bollinger bands; the RSI still hovering in the high 40s, MACD still in bearish divergence with a bullish crossover still looking possible, and the Bollinger bands still showing only a small degree of volatility. Resetting sell orders to 10300 sats (+5%) and 11350 sats (+15%).

Note

VRC bounced to reach both sell targets at 10300 sats (~5%) and 11350 sats (~15%). Total trading gain from 4 trades: 14.4%.

With money still flowing out of crypto markets with the overall market cap now <400b, VRC is approaching the pointy end of a bearish symmetrical triangle that may see it fall to the 'resistance come support' line at around 8600-8700 sats. Overall looks to be a bearish trend.

Trade closed: target reached

theloneisobar

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