Technical Analysis: Outlook and Evaluation
1. Trend Direction
The chart shows that the price is approaching a significant resistance area. Short-term movements show an upward recovery after the downtrend was broken. However, the price may have difficulty breaking through the blue resistance area.
2. Support and Resistance Levels
• Main Support Level: The 480-490 area appears to be an important support. If this level is maintained, the upward momentum may continue.
• Main Resistance Level: There is a strong resistance in the 680-700 area. Breaking this area may cause the upward movement to gain momentum.
3. Formations and Formation Reversals
• Breaking the Downtrend Line: The price is observed to have broken the downtrend line upwards. This is a positive signal for the continuation of the rise.
• Potential Consolidation: The price is trending sideways as it moves towards the major resistance area. This consolidation area will determine the next move of the price.
4. Indicators
• Volume: Volume increases on price moves, indicating that the rally is gaining strength. However, a decrease in volume in recent moves could be a signal that buyers' power may be waning.
• Recommended Indicators: Overbought/oversold areas can be checked using RSI and MACD. RSI above 70 indicates that the price may be in the overbought area.
5. Target and Prices
• Short Term Target: The 680 level can be targeted as a short-term resistance.
• Medium Term Target: If the price breaks the 680 level, 700 and above levels can be targeted.
• Stop-Loss: If the level falls below 480, using a stop-loss may be appropriate to limit the risk.
6. Strategy and Recommendations
1. Buying Strategy: Buying can be done if the price breaks the 680 resistance. A volume break above this level can trigger a strong upward movement.
2. Take Profit: Consider taking profit at 680-700 levels. It would be useful to determine the take profit levels according to the resistance zones.
3. Using Stop-Loss: Falling below the support level of 480 will disrupt the short-term bullish outlook. Therefore, a stop-loss can be placed below this level.
4. Risk Management: Adjusting position size appropriately is important to limit potential losses.
7. General Comment
In order for the price to continue its uptrend, it needs to make a sustained move above the main resistance area of 680-700. Although there are positive signals for an increase, price movements at the resistance level should be followed closely. Otherwise, the price may pull back towards the support levels.
