The chart shows a long-term “Cup and Handle” pattern, which generally indicates that the uptrend will continue.
Target and Prices
• First Target: Fibonacci 1.618 level, approximately 6.91 USD.
• Second Target: Fibonacci 2.272 level, approximately 9.59 USD.
• If the formation is completed, the target area can be expected in this price range.
Support and Resistance Levels
• Supports:
• 1.17 USD (Critical intermediate support)
• 0.82 USD (Formation lower limit, main support)
• Resistors:
• 2.30 USD (Main resistance, formation neckline)
• 6.91 USD (Fibonacci target level)
Indicators
• Volume: An increase in volume should be observed for formation confirmation. Especially during the breakout of the resistance zone, high volume should be expected.
• Fibonacci Retracement: The levels determined on the chart support the targets.
• RSI (Relative Strength Index): Attention should be paid to the current overbought or oversold situation.
Formations and Transformation
• The cup part is complete and the price is moving towards the neckline.
• The handle formation may be completed by a falling trend line. After the breakout, rapid progress towards targets may be seen.
Trend Direction
• Upward: The formation structure and current price movements indicate that the rise may continue.
Strategy and Recommendations
1. Wait for the Breakout: A close above the neckline (2.30 USD) would be confirmation of the formation.
2. Buy Zone: The 1.17 USD support level may be suitable for buying.
3. Target and Stop-Loss:
• First target: 6.91 USD
• Stop-loss: Below 0.82 USD level.
Comment
This chart indicates a potential strong bullish move. However, volume should be monitored carefully during the resistance breakout. In case of a breakdown of the formation, a search for stronger support below $0.82 may be necessary.