Analysis and Commentary
1. Trend Direction:
• The chart shows an upward breakout after a long downtrend. This indicates that the downtrend is over and an uptrend is starting. The price is showing strong upward momentum.
2. Formation and Formation Reversals:
• Formation: A downtrend line breaking upwards can be considered a classic trend reversal formation. This formation increases the potential for the price to move higher.
• Target: The target of the upward movement may be an increase as high as the formation height. This points to the levels of 4.00-4.50 USD.
3. Target and Prices:
• Short Term Target: 2.75-3.00 USD levels can be monitored as resistance in the short term.
• Medium Term Target: There is an upward potential of up to 3.50-4.00 USD levels.
• Long-Term Target: 4.50 USD levels can be considered as the main resistance zone.
4. Support and Resistance Levels:
• Support Levels:
• 2.00 USD: A strong support level. If the price finds buyers here, the rise is likely to continue.
• 1.75-1.80 USD: Second support zone.
• Resistance Levels:
• 3.00 USD: First resistance level.
• 4.00 USD: Main target resistance zone.
5. Indicators:
• RSI (Relative Strength Index): The RSI may be in the overbought region, indicating a risk of correction in the short term. However, when the trend is strong, the RSI may remain in the overbought region for a long time.
• MACD (Moving Average Convergence Divergence): If the MACD remains in the positive territory, the uptrend is supported.
• Volume: Continuing volume growth indicates that the rise is sustainable.
6. Strategy and Recommendations:
• Acquisition Strategy:
• If the price remains above the 2.00 USD level, a gradual buying strategy can be followed.
• In strong upward momentum, you can evaluate short-term corrections as buying opportunities.
• Take Profit and Stop Loss:
• Take Profit: The levels of 3.00 USD and 4.00 USD can be considered as take profit points.
• Stop Loss: A close below the 1.75 USD level may invalidate the bullish scenario.
• Risk Management: Allocate a small portion of your capital to this position and always set stop loss levels.
7. General Comment:
• The price appears to be in a strong uptrend and this momentum may continue. However, be prepared for short-term corrections. Monitoring the strength of volume and momentum is important for the sustainability of the trend.
Conclusion
The uptrend looks strong and the price has a high potential to test the 3.00 USD level. However, it is necessary to be careful against sudden corrections and to pay attention to risk management. Profit realizations can be made when target levels are reached.