Analysis and Commentary
1. Chart Review:
The chart in the image shows that a potential rise may begin when a horizontal resistance level is broken. Fibonacci levels were used to determine target prices.
2. Target and Prices:
• First target: 1.156 USD (Fibonacci 1.0 level).
• Second target: 1.771 USD (Fibonacci 2.618 level).
• Third target: 2.377 USD (Fibonacci 3.618 level).
These targets will be valid if there is a volume break above the resistance level.
3. Support and Resistance Levels:
• Support Levels: There is a strong demand area in the 450-500 USD band.
• Resistance Levels: Breaking the 690 USD level may pave the way for an increase.
4. Indicators:
• EMA (Exponential Moving Average) curves support the upward trend of the price.
• Bollinger bands are widening, indicating that price action may accelerate as volatility increases.
• The RSI (Relative Strength Index) may be approaching the overbought territory, indicating the potential for some correction.
5. Formations and Formation Reversals:
• The Inverse Head and Shoulders (TOBO) formation is observed. A strong rise can be expected with the completion of this formation.
• The price is experiencing a consolidation at the neckline level.
6. Trend Direction:
• An upward trend prevails in the medium and long term.
• In the short term, a horizontal consolidation is observed.
7. Strategic:
• Short Term Transaction: Buying can be done when the volume increase is confirmed by breaking the 690 USD level.
• Long Term Transaction: If there is a pullback towards the 450-500 USD band, these levels may be suitable for buying.
• Stop Loss: Below the 450 USD level can be determined as the stop loss point for short-term transactions.
8. Advice to Investors:
• Consider market volume, trading activity and macroeconomic conditions before investing.
• Waiting for the resistance level to be broken and for this break to be supported by volume will reduce the risk.
• A strategy of protecting profits can be implemented by gradually determining price targets.
The chart is signaling a strong formation and trend reversal. However, it is useful to be careful during periods of high volatility.