Chart Pattern:
The chart shows a potential "Bullish Flag" pattern. This is characterized by:
1. Strong Uptrend: The price has risen sharply to 76,420.
2. Consolidation: After the sharp rise, the price consolidates sideways within a narrow range, forming a flag-like shape.
Trading Strategy:
1. Bullish Continuation: Given the flag pattern and the strong uptrend, a bullish continuation is likely if the price breaks above the upper resistance of the consolidation range (around 76,000 - 76,500).
2. Entry Point: Look for a breakout above 76,500 with strong volume as a confirmation of the continuation.
3. Stop Loss: Place a stop loss just below the lower boundary of the consolidation range, around 73,000.
4. Take Profit: Measure the height of the flagpole (the initial rise before consolidation) and project it upwards from the breakout point to set a target.
Indicators:
RSI: Since RSI is in the overbought zone, monitor closely for any divergence or signs of reversal.
Volume: Ensure that the breakout is accompanied by high volume to confirm the move.
Conclusion:
The chart shows a strong bullish trend with a potential bullish flag pattern. A breakout above 76,500 with high volume can be a good entry point for a long position, with appropriate risk management in place using stop losses and profit targets.