Graphic Analysis
1. Formations and Formation Reversals:
• There is a clear symmetrical triangle formation on the chart. This formation usually results in a breakout after a squeeze.
• Symmetrical triangle formations have the potential to continue in the direction of the trend. In this case, the formation may break upwards.
2. Support and Resistance Levels:
• Support:
• The 2.00 level seems to be a strong support. The price reacted from here.
• Resistance:
• The 2.50 level is an important resistance in the short term.
• The target level is 5.20. This is the target of a strong upward movement.
3. Indicators:
• Moving averages (hypothetically, although not visible on the chart):
• The price staying above the moving averages is a positive signal for the continuation of the upward trend.
• Bollinger Bands:
• The upper band breakout may give a clue that the formation will break upwards.
4. Trend Direction:
• The general trend is upward. The trend may become even stronger, especially if the formation breaks upwards.
Target and Prices
• First target: 2.50
• Main target: 5.20
• Reaching these levels in the medium term may be possible by successfully breaking the current formation.
Strategy and Recommendations:
1. Breakage Should Be Expected:
• The price should be expected to break the upper band of the symmetrical triangle (around 2.50) with volume.
2. Buying from Strong Supports:
• A buying opportunity can be considered in pullbacks close to the 2.00 level.
3. Using Stop Loss:
• Risk should be minimized by taking a stop loss when closing below 1.90.
4. Volume Tracking:
• Increasing volume during the breakout indicates that the upward movement may be stronger.
General Advice:
• If the formation breaks upwards, there is a high probability that the price will move towards the targeted levels.
• However, one should be careful about low volume or misleading breakouts and stick to support-resistance levels.