Let's make a detailed evaluation while analyzing this chart:
1. Support and Resistance Levels:
• Support: The 2.50 and 2.80 levels, which the price has previously tested and received an upward reaction, are important support areas.
• Resistance: Above the current price, the 3.50 - 3.80 area appears as the first resistance. After that, the 5.00 levels can be determined as an important target.
2. Formations:
• The breaking of the downtrend on the chart draws attention. This breaking is generally considered as a trend reversal signal.
• Target: After the breakout, an increase as high as the formation height can be expected. In this case, there is a potential to reach 5.50-5.60 levels as a target.
3. Indicators and Trend Direction:
• Trend Direction: After the breakout, the trend direction seems to be upwards.
• If there is an increase in volume, this confirms that the breakout is strong and increases the upside potential.
• If indicators such as Bollinger Bands or RSI support the continuation of the uptrend, the positive outlook becomes stronger.
4. Strategy and Recommendations:
• Entry after Breakout: If the price has broken the downward trend and closed above it, entry can be made.
• Target: The first target could be the 3.80 level. Profit taking could be considered at this level. The second target is the 5.50-6.00 area.
• Stop-Loss: 2.80 or levels just below the trend can be determined as stop-loss.
• Confirmation of the Rise: Volume support and price staying above 3.50 are important for the continuation of the rise.
5. Risk Management:
• Position size should be controlled by paying attention to the specified stop levels.
• If the downtrend is broken again, the loss should be cut.
The breakout and targets on the chart indicate a strong uptrend potential. However, there may be a slowdown at resistance levels as the price rises. It is recommended that you take a position by carefully following technical levels.