Current Observations:
Price: $5.714
Moving Averages (MA):
MA(60): $5.712 (price is slightly above, suggesting mild bullish momentum).
Shorter MAs (MA5 and MA10) aren't aligned, indicating a potential lack of strong trend direction.
Volume: Recent spikes in volume show buying and selling pressure, implying volatility.
24H Range: $5.473 - $6.080, with price leaning towards the lower end of the range.
Key Levels:
Support: $5.47 (24-hour low and a psychological level).
Resistance: $6.08 (24-hour high).
Trading Plan:
1. Long Position (Bullish Scenario):
Entry: Enter a long trade if price breaks and holds above $5.75 with strong volume.
Take Profit (TP):
TP1: $6.00 (near resistance).
TP2: $6.08 (24-hour high).
Stop Loss (SL): Place SL at $5.60 (below MA60 and recent consolidation).
Trade Duration: Short-term to medium-term (1-3 days).
2. Short Position (Bearish Scenario):
Entry: Consider a short if price breaks below $5.65 with volume confirmation.
Take Profit (TP):
TP1: $5.50 (round number psychological level).
TP2: $5.47 (24-hour low).
Stop Loss (SL): Place SL at $5.75 (recent resistance and breakout level).
Trade Duration: Short-term (1-2 days).
Contingency Plan:
If signals reverse or a false breakout occurs:
For Longs: Exit immediately if price falls below $5.60, as it indicates a rejection at resistance.
For Shorts: Exit immediately if price rises above $5.75, invalidating the downtrend scenario.
Consider re-evaluating if price enters a consolidation phase between $5.60 and $5.75.
Risk Management:
Limit risk to 1-2% of account balance per trade.
Monitor trading volumes and broader market sentiment for confirmation of breakouts or reversals.
