After the price of Monero ruse up by 19% a correction is currently happening. As the price action confirmed in the second wave that the structure is likely a descending wedge I am expecting either a WXY correction or a prolonged WXYXZ correction. After the correction ends I am expecting a trend continuation to the upside on the black bold line which is the first significant resistance as it was the support from the triangle on the daily time frame.
In an alternative scenario, the wedge is broken from the downside and the price goes down to the prior low level of 121,78$. The trade would be invalid if the 130$ level doesn't serve as support.
Entry:
I would open two or three buy orders with different position sizes when the price approaches the buy zone - from where I projected wave Y at 136,4$ to 132,8$.
Stop loss:
Main invalidation level is around 130$ level with is a minor range support. Because I am expecting the surge if the level doesn't serve as support that means that the momentum needed for the price to surge is not there. It depends on your risk tolerance, but a stop loss between 133$ and 126,5$ is ok.
Take profit:
Because I am expecting the price to retest prior support for resistance my take profit levels would be from 174-175$.
Trade duration:
I am expecting this trade to last about 7 days.
Consolidation level:
I would raise the stop loss at 148$ (if the trade is valid) which is the prior high and a minor range resistance level.
Warning level:
If the wedge is broken on the downside below 134,6$ I would consider closing the trade because in that case the correction count changed or was not accurate, as waves Y or Z if ended on the downside a breakout on the upside is to be expected.
Risk assessment:
This trade carries 31% profit potential and a 4,83% loss potential which brings the risk/reward ratio to 6,43.
