CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.48% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

77.48% of retail investor accounts lose money when trading CFDs with this provider.

Crypto Update: Waves starting to confirm a new move higher?

Published: 09.02.2022
by Joseph Jeffriess

Hi traders, today we’re looking at Waves on its D1 chart as price has started to push through its long-term downtrend.

Looking at Waves we’re seeing a few signs that buyers are trying to set up a new uptrend. Looking back to late January and early February we can see price broke out of a descending triangle pattern. This set up the first leg higher that tested and closed outside the long-term downtrend. Sellers did set up one new reaction lower but today we have seen price pull back yesterday’s losses and has started to set 10.10 as support which was a previous resistance level. That, with the pattern break, HL and resistance to support hold, backs up the case for buyers.

For the breakout to confirm we need to see price break above 11.20 resistance. A move through this level continues the case for buyers but a break above 13.15 really starts to push a case for a new medium-term coming into play.

A fail at current resistance and a new move down back to 8.25 is a big worry for buyer momentum and could suggest sellers could continue to hold numbers.

Waves D1 Chart 

* The information provided on this page are the opinions of the author and do not necessarily reflect the opinions of Eightcap and are not endorsed by Eightcap.

Any person acting on the information presented on this page does so entirely at their own risk. No representation or warranty is given as to the accuracy or completeness of this information. Any research provided does not have regard to any specific investment objectives, financial situation and needs of any specific person who may receive it.

Margin trading involves a high level of risk and may not be suitable for all investors. You should carefully consider your objectives, financial situation, needs and level of experience before entering into any margined transactions with Eightcap, and seek independent advice if necessary.