💎 Technical Analysis: Synthetix ( $SNX )
Market capitalization: $710 million.
The SNX chart is in a sideways channel, and the channel is narrow enough to use for breakout trading.
🟡 This is a classic situation of volatility compression before directional movement.
How to trade❔
💬 Buy on upward channel breakout. Set stop-loss behind the opposite channel boundary.
💬 Profit target – before the nearest resistance level above. Risk/reward ratio is very attractive.
💬 Sell on downward channel breakout. Stop-loss similarly behind the opposite channel boundary.
💬 Profit target – before the nearest support level below. Risk/reward ratio is also very good.
💬 Risk management: These trades are best managed by trailing the stop-loss as price moves, at a distance equal to two stop-losses.
💬 This will lock in profit during strong movement and protect against reversal.
Conclusion:
SNX offers an excellent opportunity for trading the narrow channel breakout with favorable risk/reward ratios in both directions. The key is waiting for a clear signal and properly managing the position.
📈 Open a trade with $SNX
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