MartClues AI Alert: Support Breakout Trade Setup
Trade Setup:
The price has broken below the 200-day moving average, putting the long-term uptrend at risk. We are waiting for the price to find support, potentially around $4.75, before considering a swing trade entry. A price alert should be set for this level. A recent bullish fundamental research report (Coin Pick) on TON suggests its valuation is favorable compared to other Layer-1 and Layer-2 networks.
Pattern:
Support Breakout: When the price breaks below a support zone, it indicates that selling pressure has outweighed buying pressure at that level, and the price is likely to decline further. After breaking below support, the next closest support zone becomes the new price target. For more details, review Lesson 7 on trading key level breakouts.
Trend:
Short-term Trend: Strong DownMedium-term Trend: DownLong-term Trend: Neutral
Momentum:
Momentum is bearish as the MACD Line has crossed below the MACD Signal Line, indicating weakening bullish momentum. The price is not currently overbought or oversold, based on RSI-14 levels (RSI > 30 and RSI < 70).
Support and Resistance:
Nearest Support Zone: $4.75, then $4.50Nearest Resistance Zone: $6.75, then $8.30
Actionable Strategy:
Monitor the price for potential support around $4.75. Consider entering a swing trade if support holds at this level. Be prepared to adjust your strategy based on price action and momentum indicators.
Risk Management:
Given the mixed trends and bearish momentum, ensure to set appropriate stop losses and manage risk effectively. Review Lesson 7 for trading breakouts and Lesson 9 for risk management techniques.
Market Insight:
The recent bullish report on TON may influence price action, so stay updated with fundamental developments.
