Technical Analysis (WING/USDT 12 Hour Chart)
1. General Chart Review:
• The price is moving on an uptrend support and is attempting to break out of the triangle formation.
• Recent price movements indicate the existence of an ascending triangle formation and a potential breakout.
2. Target and Prices:
• Short-Term Target: The 5.925 USDT level is the first target that can be reached after an upward break.
• Medium Term Target: 7.063 USDT level is a strong resistance zone.
• Long-Term Target: 7.954-7.966 USDT band, potentially a profit-taking zone.
3. Support and Resistance Levels:
• Support Levels:
• 5.069 USDT: Strong support, expected to react if price pulls back.
• 4.987 USDT: A critical support level.
• 4.801 USDT: The lower limit of the formation and an important defensive line.
• Resistance Levels:
• 5.925 USDT: First major resistance zone.
• 7.063 USDT: Medium-term target resistance.
• 7.954-7.966 USDT: Long-term strong resistance zone.
4. Indicators:
• Moving Averages: The price is trading above major moving averages, supporting bullish momentum.
• RSI (Relative Strength Index): If the RSI is not close to the overbought or oversold areas, it may be in a neutral position for the continuation of the trend.
• MACD: If there is a positive zone or an upward crossover, the buy signal may strengthen.
5. Formations and Formation Reversals:
• Ascending Triangle Formation: This formation increases the probability of an upward breakout. The ascending triangle is generally considered a continuation formation and may indicate the continuation of the uptrend.
• Consolidation: Price appears to be gathering strength for a significant move.
6. Trend Direction:
• Short-Term Trend: Uptrend continues. Price is respecting the support trend line.
• Medium Term Trend: Potentially upward.
• Long-Term Trend: The rise may continue if closes above strong resistance levels.
7. Strategy and Recommendations:
• Buying Strategy: Buying opportunities can be evaluated above 5,400 USDT. This level may support the price to rise after the formation breakout.
• Stop-Loss: Setting a stop-loss below the 4.801 USDT level is important for risk management. This is used to limit losses in case the price falls below the formation.
• Profit Taking: Partial profit taking can be done at 5.925 USDT and 7.063 USDT levels. For long-term investors, 7.954-7.966 USDT levels can be considered.
• Volume Follow: Increasing volume during the rally will support the validity of the breakout.
8. General Comment:
• The chart is in an ascending triangle formation, potentially setting the stage for an upward move. A strong close above 5,400 USDT could support a move higher.
• Traders should verify the strength of the breakout by monitoring indicators such as volume, RSI, and MACD. Attention should be paid to risk management strategies.