Channels Supporting SOL
Here we see downward and upward channels supporting SOL. But even so it looks weak, and historically ends in a move lower.
Potential Scenarios
With that said, we need to break supports, which will happen in a gentle move through it, following by acceptance a big sell off. OR a move higher to trap longs, followed by an aggressive move down.
Expectations
Either way, I am expecting a move lower, and use channels to help guide my bids. I expect the move to be violent enough to take out the entire channel, and find support at the mid line of a new channel below. This strategy has proven very helpful for me in the past.
Anticipated Support Level
With the confluence of the midline of this new channel and horizontal support, I expect a big bounce around $80.
Conclusion
Good luck.
