TAO has been on an absolute tear over the past week, rallying +45% in just 7 days with seven consecutive bullish daily candles.
Strong momentum but price is now approaching a major resistance zone, where a potential short setup could form.
Resistance Confluence
Price is moving into a key resistance area between:
This zone lines up with several important factors:
As many of you know, I like trading reactions around the 0.786–0.886 Fibonacci levels, where exhaustion and reversals often occur.
Potential Short Setup
The first level I’m watching is the high at:
A swing failure pattern (SFP) above this level could trigger the first short opportunity.
The most attractive entries would be higher within the zone:
At that point, I’d look for signs of weakness such as:
Targets
For this short setup, I’m targeting the following support levels:
These levels provide logical areas for profit taking if the rejection plays out.
Key Idea
If TAO shows exhaustion within this resistance cluster, it could offer a solid risk/reward short opportunity.
As always wait for confirmation, don’t front-run the trade.
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Strong momentum but price is now approaching a major resistance zone, where a potential short setup could form.
Resistance Confluence
Price is moving into a key resistance area between:
- $260 – $270
This zone lines up with several important factors:
- 0.786 Fibonacci retracement at $268.2
- Anchored VWAP at $272.4
- Overextended
As many of you know, I like trading reactions around the 0.786–0.886 Fibonacci levels, where exhaustion and reversals often occur.
Potential Short Setup
The first level I’m watching is the high at:
- $256.9
A swing failure pattern (SFP) above this level could trigger the first short opportunity.
The most attractive entries would be higher within the zone:
- $265 – $272
At that point, I’d look for signs of weakness such as:
- Rejection wicks
- Momentum slowdown
- Lower timeframe reversals
Targets
For this short setup, I’m targeting the following support levels:
- $240 → midpoint of previous trading range
- $220-219 → yearly level
- $214 → anchored VWAP support line
These levels provide logical areas for profit taking if the rejection plays out.
Key Idea
If TAO shows exhaustion within this resistance cluster, it could offer a solid risk/reward short opportunity.
As always wait for confirmation, don’t front-run the trade.
_________________________________
💬 If you found this helpful, drop a like and comment!
Note
TAO has been trading very technically and giving great entries. For the short setup, I’d like to see a clean move below the key high at $256.9, followed by a retest.Note
Nice resistance to support flip with a clean anchored VWAP retest. Watching the 0.886 Fib at $284.2 for the next possible short setupNote
$270 continues to act as support with another bounce. Best case, we get one more move up that clears the key high at $302.4 for the next short setup.Note
$270 continues to hold as support. Next, I’d like to see price take out the key high, followed by a fake breakout and a quick move back down toward $260.
classic sweep of the previous day’s low, offering a low-risk long opportunity targeting the weekly open as TP.
Bullish momentum on the 15m TF remains intact.
Note
TAO played out perfectly. Price retraced into the $250–$240 zone, delivering a clean 0.786 Fib retest in confluence with the 4H order block, followed by a strong rally that cleared the key high at $302.4 exactly the level I was watching.
That momentum pushed price straight into the $313–$309 resistance zone, offering a high-probability short entry. It even gave a second short opportunity on another attempt to break higher, but failed just before tagging the 0.886 Fib.
Fantastic play.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
🏆 Mastering Fibonacci for precision trading
🔹 Sharing high-probability trade setups
⚡ Unlock the power of technical analysis!
🔹 Sharing high-probability trade setups
⚡ Unlock the power of technical analysis!
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.