Electra (ECA): Quick Update - Patience is Key
We all want price to rise quickly, right? It can be really fun, but the faster price goes up, the faster it can come down in a correction. So, while this correction from our last bull-run has taken some time and hasn't been the most exciting thing, I believe that those who are patient will get rewarded. I say this in both the short-term and the long-term. Patience is always key.
I do believe that the correction has reached its bottom, and we now await the next price move. Check out the chart below:
What I'm attempting to communicate in the above chart is a simple message: cycles. That is also the message that Elliot Waves Theory attempts to communicate. For every up, there is a down. For those long-term holders, we don't care for any of this noise. For those who are patient, we don't care for any of this noise. Why? Because it's just noise. When we look at the larger picture, the noise becomes irrelevant and the overall trend becomes clear. Check out the charts below. Every image has a candle that represents a larger span of time:
1 hour:
4 hour:
1 day:
1 week:
The point? Don't get bothered by the noise; don't let your impatience get the better of you.
I find it very funny when I see people say "be the green in the sea of red", though they are looking at stats from the past hour, or past 24 hours. That, to me, is ridiculous and is only for the sake of immature shilling. Even when ECA was on its last bull-run, I was of course happy with it...but I said to myself "eh, give it a few days". Things cannot go up forever. Sure enough, there ensued a correction. Although, where was everyone saying "BE THE RED IN THE SEA OF GREEN", etc. I don't say this to speak negatively on ECA, I say this to again emphasize the cyclical nature.
The longer you hold your position the better, but the longer you hold your position, the longer the corrections may take place.
Enough of my blabbering. Let's get to discussing what you're likely here for:
I've denoted our longer-term support in yellow, and in blue I've denoted a bullish downward-pointing wedge. Sideways price action has led us to decisively breach the seller's resistance.
Let's check out the MACD:
The MACD has found its way back to a more neutral spot.
There is not much to report on so far! In times like these immidiately following a correction, there is a lot of uncertainty and not many people have very bullish sentiment. After the bottom of a correction, we are technically on a minor-degree wave 1. Elliot Waves Theory states the following about wave 1:
"Wave one is rarely obvious at its inception. When the first wave of a new bull market begins, the fundamental news is almost universally negative. The previous trend is considered still strongly in force. Fundamental analysts continue to revise their earnings estimates lower; the economy probably does not look strong. Sentiment surveys are decidedly bearish, put options are in vogue, and implied volatility in the options market is high. Volume might increase a bit as prices rise, but not by enough to alert many technical analysts."
Patience is key. I hope you found this to be useful! I encourage you to use your own judgement and discernment in these times.
Legal Disclaimer: I am not a financial advisor nor is any content in this article presented as financial advice. The information provided in this blog post and any other posts that I make and any accompanying material is for informational purposes only. It should not be considered financial or investment advice of any kind. One should consult with a financial or investment professional to determine what may be best for your individual needs. Plain English: This is only my opinion, make of it what you wish. What does this mean? It means it's not advice nor recommendation to either buy or sell anything! It's only meant for use as informative or entertainment purposes.