Short

CAKE/USDT | Rising Wedge ⇒ Supply-Zone Short

CAKE/USDT | Rising Wedge ⇒ Supply-Zone Short

Building on Prior Success

Following my May 1 CAKE/USDT forecast—view it here:

CAKE/USDT | Rising Wedge ⇒ Bearish Reversal

—which itself was rooted in the April 6 trend-rebound call that delivered a 38% gain:

📈 Market Structure
Pattern: Well-defined rising wedge since early April (blue trend-lines)
Bearish Impulse: Wedges often break down as buying exhausts into the apex

📌 Supply Order Block
Zone: 2.246 – 2.300 USDT (blue shaded area)
Upper Resistance: 2.387 USDT (Red line) marks April’s supply peak

⚔️ Entry Levels
Aggressive: Short on a clear rejection from 2.246 USDT (lower edge of block)
Conservative: Wait for a failed break or bearish candle near 2.300 USDT (block/wedge confluence)

🛑 Stop Loss
Invalidation: A close above 2.40 – USDT high-timeframe supply
Rationale: Allows for a false spike while protecting capital

🎯 Profit Targets
TP1 2.110
TP2 1.946
TP3 1.752

🔧 Trade Management
- Scale out partial positions at each TP to lock in gains
- Move stop to breakeven once TP1 is reached
- Reassess if price sustains above 2.40 USDT

⚠️ Rising wedges can whip both ways—always size positions properly and respect your stop.