Analysis:
1. Chart Review and Formations:
• The chart shows a clear downtrend breakout (red line).
• The formation of the “Reverse Head and Shoulders (TOBO)” pattern draws attention.
• This formation generally signals a trend reversal and indicates the beginning of upward movements.
2. Support and Resistance Levels:
• Support Level: The 0.0200 region is evident as the base levels of the formation.
• Resistance Levels:
• 0.0400
• 0.0800 (significant psychological resistance)
• There are targets of 0.1000 and above 0.2500.
3. Trend Direction:
• The long-term downtrend has been broken and there is a strong possibility of an upward movement beginning.
• With the confirmation of the TOBO formation, a positive trend may occur in the medium and long term.
4. Indicators:
• Volume: Increased volume is observed after the breakout. This supports that the breakout is strong.
• RSI (Relative Strength Index): If the RSI is above 50, it confirms that the upward momentum is strengthening.
• MACD: A buy signal may have occurred; especially the intersection above the zero line will be critical.
5. Target and Prices:
• The formation target points to approximately 0.0800-0.1000 band.
• In the longer term, the price has the potential to rise to 0.2500.
6. Strategy and Recommendation:
• Short Term Strategy: Volume closings above the TOBO formation neckline (approximately 0.0280) may offer a buying opportunity.
• Medium Term Strategy: If the price breaks the 0.0400 resistance, the position can be increased.
• Stop Loss: Stop loss can be set below the 0.0200 level.
• Long Term Strategy: Target prices can be set as 0.0800, 0.1000 and 0.2500 respectively.
7. Risk Management:
• In case the formation is invalidated (closes below 0.0200), it may be necessary to exit the position.
• Considering the market conditions, it is recommended to allocate a small share in the portfolio.
Conclusion:
There is a positive outlook based on the chart and formation. Especially the TOBO formation is a strong signal for a trend reversal. The general trend of the market and volume should be followed in order to achieve the targets.