Chart Analysis and Interpretation:
1. Formations and Formation Rotation:
• The chart clearly shows a “Rounding Bottom” formation. This usually indicates a long-term uptrend.
• The formation target is calculated by projecting upwards as the distance between the bottom and the neckline. This target points to the 0.2785 level.
2. Support and Resistance Levels:
• Supports: There are strong supports at 0.1618 and 0.145 levels.
• Resistances: 0.2785, 0.4005 and 0.5215 levels are marked as resistance points.
3. Indicators:
• Fibonacci levels were used and these levels defined possible targets and pullback areas of the price.
• Volume usually increases during the breakout from the bottom in a round bottom formation, which is a signal that supports the rise.
4. Trend Direction:
• The current trend is upward. The recovery from the bottom indicates that the trend is changing and the bullish momentum is increasing.
5. Strategic:
• Buying Strategy: Buying can be done above the 0.1618 level. This is both a support zone and a safe entry area.
• Short Term Target: 0.2785 level. As this level is approached, profit taking may be considered.
• Medium Term Target: 0.4005 level.
• Long Term Target: 0.5215 level.
• Stop Loss: A closing below 0.145 can be determined as the stop loss level.
Recommendation:
• Since the round bottom formation is a reliable bullish signal, it may make sense to buy this position with a stop-loss strategy.
• Volume increase is another important element that will support the breakout of the formation. Without volume confirmation, excessive risk should not be taken.
• It would be beneficial for investors to follow the general market situation and news flow closely.