SUI has been playing nice with the technicals lately, giving us some really neat swing trade opportunities. Remember that short trade we talked about—from $3 down to around $2? Well, here’s why that setup was a winner.
After that initial short trade, SUI bounced off $2 and then traded in a tight range between $2.5 and $2.2 for about two weeks. Then it broke higher to test the monthly open at $2.83—and it hit that level right on the dot. That’s where all the magic happens.
Why This Short Trade Worked
- Fibonacci Confluence: When you draw a Fibonacci from the high at $3 to the low at $1.9626, the 0.786 level comes in at about $2.778. This is right near the monthly open, and we know that price tends to reverse between the 0.618 and 0.786 zones.
- Trading Range POC: The $2.8 area was our previous point of control, so it adds extra weight as a resistance level.
- Anchored VWAP: The VWAP from the high at $3.8999 sits just above the monthly open at around $2.855, giving us another nod that this level is important.
- Fib Speed Resistance Fan: Even the speed resistance fan at the 0.618 level lines up with the $2.8 zone.
All these factors lined up to form a solid resistance area. That’s why short entries between $2.778 and $2.855 made sense.
Trade Setup Recap
Short Trade:
- Entry Zone: $2.778 to $2.855
- Target: The bullish order block at about $2.4745, which also lines up with the 0.618 fib retracement from the low at $2.2358 and the high at $2.8309
- Risk-to-Reward: This setup gave us a risk-to-reward of 4:1 or even better, depending on where you set your stop-loss.
There’s also a possible long trade at the bullish order block, but that one’s only for when you see the confirmation.
Wrapping It Up
The takeaway? Confluence is your best friend. Waiting for that high-probability setup can really pay off. Let the trade come to you, don’t force it, and stay calm and focused.
Thanks for reading this SUI analysis. If you liked it, please leave a like and drop a comment. Happy trading!