Graphic Analysis:
1. Target and Prices:
• The chart shows a 5-wave Elliott Wave Formation.
• The 20.00 level has been indicated as the 5th wave target.
• The price is currently trading at around 0.88.
2. Support and Resistance Levels:
• Supports:
• The 0.40 – 0.60 region appears to be an important support area.
• Price reversals have occurred at these levels before.
• The 0.1296 level is marked as a potential area for entry.
• Resistors:
• The first significant resistance is at the 1.50 level.
• Then, the 3.50 and 8.00 levels stand out as strong resistance areas.
3. Indicators:
• There is no indicator information on the chart, but:
• Momentum indicators such as RSI can be used. Caution should be exercised in overbought areas.
• An upward crossover of moving averages may confirm an uptrend.
4. Formations and Formation Reversals:
• According to Elliott Wave Theory, the 4th wave is complete and the 5th wave appears to have begun.
• This indicates that the upward trend will continue.
• After the breakout, rapid movement to target areas can be expected.
5. Trend Direction:
• The current trend is upward. A new uptrend has started after the 4th wave.
• However, in the short term, the price is likely to test the support areas.
Strategy Proposal:
1. Short Term Strategy:
• Buying at support levels: If the 0.60 and 0.40 areas are approached, buying opportunities can be evaluated.
• Stop Loss: Using a stop loss below the 0.40 level minimizes the risk.
2. Medium and Long Term Strategy:
• Positions can be carried up to the 20.00 level, which is the target of the Elliott Wave Formation.
• However, gradual profit taking can be done at levels of 1.50, 3.50 and 8.00.
3. Risk Management:
• Positions should be opened with a small percentage of the total capital.
• Attention should be paid to sudden price fluctuations in areas with low transaction volume.
Conclusion:
This chart indicates a strong upside potential. However, it should be noted that the price may make short-term corrections. It is important to trade in a planned and patient manner, focusing on support levels.