There are clear signs of bullish momentum, with several BOS showing an uptrend. The price has retraced to key Fibonacci levels after the recent high.
The green zone below the current price level indicates a strong support area where buying interest may be present.
Detailed Long Position Analysis and Setup
Based on the current charts and observations, here is the plan for setting up a long position in VeChain (VET/USDT):
Short-term trade
Entry Point
Identify a specific entry point around the 0.705 or 0.786 Fibonacci retracement levels. The current levels to watch are:
Fibo 0.705: 0.0299
Fibo 0.786: 0.0295
Monitor the price action closely around these levels.
Stop Loss
To manage risk, set a stop loss slightly below the 0.786 level. A recommended stop loss level could be:
Stop Loss: 0.0290
This ensures that if the price breaks below the 0.786 level, your position will be exited to prevent further losses.
Take Profit
Set take profit targets at key resistance levels and recent swing highs. Suggested take profit levels are:
First Take Profit (TP1): 0.0315 (around the 0.382 Fibonacci level)
Second Take Profit (TP2): 0.0325 (recent swing high)
Third Take Profit (TP3): 0.0340 (further resistance level)
Risk-Reward Calculation
Risk: Entry (0.0295) - Stop Loss (0.0290) = 0.0005
Reward (TP1): Take Profit 1 (0.0315) - Entry (0.0295) = 0.0020
Reward (TP2): Take Profit 2 (0.0325) - Entry (0.0295) = 0.0030
Reward (TP3): Take Profit 3 (0.0340) - Entry (0.0295) = 0.0045
This gives you a favorable risk-reward ratio, making the trade potentially profitable.
Final Considerations
Ensure you stick to your trading plan and do not move your stop loss further down.
Keep an eye on market news and events that could impact VeChain and the overall crypto market.
Be patient and let the trade play out according to your plan.
Medium-term trade
Entry: current price araound 0.0295
Stop Loss: Below the support zone, for safety let's place it at 0.0268.
Take Profit 1 (1:2 RRR): 0.0349
Take Profit 2 (1:3 RRR): 0.0376
Take Profit 3 (1:4 RRR): 0.0403
Adjustments: As the trade progresses, you can move the stop loss to break even or trail it to lock in profits.
Monitoring: Keep an eye on the price action and market conditions to make informed adjustments if necessary.
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