Formations and Formation Reversals
• There is a clearly visible “Adam and Eve” formation on the chart. This formation usually occurs before a strong upward movement and can be used to determine targets after the breakout.
• The neckline of the formation appears at around 4.3 USD. A close above this level indicates that upward targets will be activated.
Target and Prices
1. First target: 7.79 USD (Fibonacci 100% level).
2. Second target: 11.77 USD (Fibonacci 161.8% level).
3. Long-term target: 15.79 USD (Fibonacci 261.8% level).
• These levels will be valid if the formation is completely broken and supported by strong volume.
Support and Resistance
• Main support level: 3.00 USD (low of Adam and Eve pattern).
• Neckline: 4.30 USD, this level acts as resistance. If a close is made above it, a strong upward movement can be expected.
• Intermediate resistance levels during the rise can be determined as: 6.00 USD and 7.79 USD.
Indicators
• Volume: An increasing volume towards the neckline draws attention. This strengthens the possibility of an upward breakout.
• Fibonacci levels can be used as an accurate guide to target prices.
• Indicators such as RSI and MACD are not visible on the chart, but it is important that they are not in overbought or oversold territory. It would be a healthy signal if the RSI moves upwards in parallel with the price increase.
Trend Direction
• It signals an uptrend in the medium and long term. If the Adam and Eve formation is completed and broken, the trend can be expected to accelerate further.
Strategy and Recommendations
1. Short-Term Trading Plan:
• A daily close above the 4.30 USD level should be expected. After this level is broken, an increase towards the first target of 7.79 USD can be expected.
• A stop-loss level below 3.00 USD can be determined. This represents the level at which the formation will break down.
2. Long-Term Trading Plan:
• If the formation is completed, there is a long-term uptrend potential up to 11.77 USD and 15.79 USD levels. Targets should be taken gradually.
3. Volume and Momentum Tracking:
• Look for high volume and strong momentum during the breakout. Otherwise, there may be a risk of a false breakout.
4. Risk Management:
• Never ignore the stop-loss level. If the formation is broken, the market direction may reverse.
5. Alternative Scenario:
• If the price fails to break the 4.30 USD level, a pullback towards the support level of 3.00 USD can be expected.
Constantly update your trading plan based on volume, indicators and general market conditions.