Step-by-Step Chart Analysis
1. Moving Averages (MA):
MA(7): (Yellow Line) Short-term trend indicator. It's currently around 2.3310.
MA(25): (Pink Line) Mid-term trend indicator, sitting at 2.3658.
MA(99): (Purple Line) Long-term trend indicator, at 2.2747.
The MA(7) is above the MA(99), which is a bullish sign. However, the MA(7) is close to crossing below the MA(25), which could indicate short-term bearish pressure.
2. Volume Analysis:
The recent volume spike suggests increased market participation. If the next candles also show high volume, it could confirm the direction of the trend.
3. Support and Resistance Levels:
Support: Around 1.9601, as seen in the recent low.
Resistance: Around 2.7281, the recent high.
Current price movement is consolidating near the 2.35 level, indicating indecision in the market.
4. Trend Direction:
The chart shows a pullback after a rally, followed by a recent recovery attempt. This could mean the market is preparing for another move, but confirmation is needed.
5. Indicators Suggest:
Neutral/Bearish Short-Term: The price is struggling to hold above the MA(25). If it fails, a test of lower levels like 2.2 or 2.1 is possible.
Bullish Mid-Term: As long as the price stays above the MA(99), the broader trend remains upward.
Next 4 Hours Prediction
Based on the analysis:
If the price breaks above 2.4286 with volume, the trend is likely bullish, targeting 2.6.
If the price breaks below 2.35 and the volume increases, the trend is likely bearish, targeting 2.2.
Our View: Given the recent recovery and consolidation above MA(99), the trend is slightly bullish for the next 4 hours, provided it holds above 2.35.