Chart Analysis and Strategy
1. Target and Prices:
• Target 1: 1.3985 level (lower limit of Major Supply Zone), which coincides with the previous resistance and Fibonacci 0.618 level.
• Target 2: 3.3900 level, Ascending Channel upper limit and Fibonacci 1.618 projection level.
2. Support and Resistance:
• Supports:
• The 0.5401 level is the current trading level and is close to the channel bottom.
• The 0.4200 level is the medium-term support level.
• Resistors:
• Around 0.7000 (Middle Resistance Zone), first critical resistance.
• 1.3985 level is the main resistance area.
3. Indicators:
• Fibonacci Retracement: Price may target 0.618 level. The current area is considered as a recovery area.
• Moving Averages: (Not available on the chart but should be considered) An upward break of long-term averages can provide an important signal for a trend change.
4. Formations and Formation Reversals:
• Ascending Channel: The movement continues within the channel. If the lower limit of this channel is not broken, the rise may continue.
• Accumulation Zone: The price got stuck in the green box and then broke upwards. This indicates that the trend will continue upwards.
5. Trend Direction:
• An upward trend is observed in the medium and long term. This trend is expected to continue as long as the movement within the channel continues.
6. Strategic:
• Short Term Strategy:
• At closing levels above 0.7000, an increase towards 1.3985 can be expected.
• A close below 0.5401 increases the risk. In this case, using stop-loss is important.
• Long Term Strategy:
• The channel upper limit can be targeted. A move towards the 3.3900 level seems possible if the major resistance levels are crossed.
• Risk Management:
• If the 0.4200 level is broken, positions should be reviewed.
Conclusion and Comment:
This chart supports the recovery and uptrend. The price moving within the channel strengthens the bullish expectation. Positive momentum may increase in movements above 0.7000. However, caution should be exercised in case of loss of support levels.