NUBUSDT Looks BullishLooking at NUBUSDT , let's do a top-down analysis starting from the Weekly down to the 4Hourly timeframe to see where price is headed.
Weekly Timeframe
For the first time since the listing of NUBUSDT on Gate.io exchange, we're starting to see what looks like a break out of the down trend which lasted for about 24 weeks since its ATH (All Time High) in April 22nd 2024.
The current corrective move on the weekly timeframe, which runs counter to the prevailing trend, is both healthy and expected as it aligns with the natural wave structure of the market, where movements typically follow an impulse-corrective-impulse pattern.
After each impulsive move, a corrective phase is expected, followed by another impulse originating from the correction to confirm the trend. In this case, we should be expecting price to break the previous Weekly LH (Lower High) to establish the trend. Anything short of this means, price is not yet ready for any up trend.
Daily Timeframe
One interesting thing about the Daily timeframe price action on this coin is that since September 5th 2024, we've been having series of HH (Higher Highs) and HL (Higher Lows). These are the type of structures I look out for when looking to take a buy position. The daily price action is also in confluence with the weekly were we saw a 24 Weeks break of trend line, all hinting a possible start of an uptrend in the long term.
The price level we are currently is an interesting one as price seems to have broken the daily trend line. The question now is, would this trend line hold or break? The truth is, not even the coin creators can answer that question. The only thing we can do at this point is check what the price is doing so we know what to expect and what to do if our expectation comes to fruition.
Let's look at this level critically. Though price seems to have broken the daily trendline, it did not close below it. This is very important as it shows rejection, indicating buyers are willing to defend that area.
Another observation would be the inverted hammer daily candle at the trendline. This candle pattern usually signifies price reversal especially when it appears at an area of interest like this one.
This type of area is where I would be looking for an entry, but first I'll need to see a break of structure from the current corrective wave to take any buy position, so let's see what the 4 Hourly timeframe would say in the next section.
I will only be bearish on this coin if price breaks and stays below the Daily HL (Higher Low) at 0.00978 price. As long as we're above that price line, I'll be dreaming Lambo.
4 Hourly Timeframe
Now on the 4 Hourly, we can see falling wedge which is a reversal pattern. It's interesting because of where this falling wedge is forming. Looking at the price structure of the 4 Hourly timeframe we're in a downtrend market. So for me to take a position I would love to see a break of the 4 Hourly Lower High (LH) and a correction after that. It's in the corrective phase of the 4 Hourly that I would look for my entry signal.
That said, if the 4 Hourly price action is not able to break the current 4 Hourly LH at 0.02188 then I'll not be interested in any buy position
Note: I do not own NUB coin, and not planning to own it either. This here is just for education and learning purpose.
My trading rule is simple, don't take position based on what you anticipate price will do, take position only when price does what you anticipate and presents you a point of entry.
