Moving Averages:
MA(7) = 45.39 (short-term trend).
MA(25) = 46.60 (medium-term trend).
MA(99) = 38.88 (long-term trend, acting as strong support).
The price is trading between the MA(7) and MA(25), indicating short-term consolidation.
MACD:
DIF: -0.09, DEA: 0.07, MACD histogram: -0.15.
MACD is below the signal line, showing bearish momentum, but it appears to be stabilizing.
Volume:
Volume has declined after a spike, suggesting a potential pause or reversal in price momentum.
Key Levels:
Resistance: 46.60 (MA25 and recent local high).
Support: 40.66 (recent swing low).
Next Major Resistance: 53.50 (24h high).
Strategy and Recommendations:
Long Position:
Entry Zone: If the price breaks above 46.60 with strong volume and candle confirmation.
Take Profit (TP):
First Target: 49.00 (psychological resistance).
Second Target: 53.50 (24h high).
Stop Loss (SL): Below 45.00 (just under MA(7) to reduce risk).
Trade Duration: 1-2 hours depending on momentum. Exit earlier if volume decreases significantly.
Short Position:
Entry Zone: If the price breaks below 45.00 and confirms bearish momentum.
Take Profit (TP):
First Target: 42.00 (key psychological level).
Second Target: 40.66 (recent swing low).
Stop Loss (SL): Above 46.00 (just above MA(25)).
Trade Duration: 1-2 hours based on price movement.
Contingency Plans (If Signals Go Against You):
Plan A (Bullish Reversal in Short Trade):
Exit the short position if the price reclaims 46.60 and holds above it for 2-3 candles.
Enter a long position targeting 49.00.
Plan B (Bearish Breakdown in Long Trade):
Exit the long position if the price falls below 45.00 and volume increases.
Consider reversing to a short trade targeting 42.00.
Plan C (False Breakout):
If a breakout above 46.60 fails and price returns below 46.00, exit the long trade quickly.
Stay out of the market until clear direction emerges.
Plan D (Ranging Market):
If the price remains between 45.00 and 46.60 for an extended period, avoid trading and wait for a breakout with confirmation.
Risk Management:
Limit risk to 1-2% of your trading capital per trade.
Use trailing stops to lock in profits if the price moves favorably.