Current Bias: Bullish
Technical Indicators Overview:
Price vs 200 MA: The price is currently trading significantly above the 200 MA ($28.16) at $35.28, confirming a bullish trend in the medium to long term.
RSI (Relative Strength Index): The RSI is at 55.87, indicating mild bullish momentum without being overbought, leaving room for further upward movement.
MACD (Moving Average Convergence Divergence): Positive MACD values with a histogram showing growing momentum support the ongoing bullish trend.
Support and Resistance Zones:
Support: The nearest support level lies at $28.00, close to the 200 MA. This level is critical for maintaining the bullish bias.
Resistance: The current resistance zone is around $38.00 - $40.00, which has historically acted as a strong barrier. A break above this zone could lead to further upside.
Volume Analysis:
Steady volume growth supports the bullish movement. Higher volume near resistance could signal a potential breakout.
Key Observations:
The price is forming higher highs and higher lows, a clear indication of an uptrend.
The breakout above the 200 MA marks a significant shift in momentum, as buyers regain control.
Cluster and Trend Dynamics:
Historical cluster markers (as shown in the second chart) emphasize the importance of the $38 - $40 resistance zone, which aligns with past price action. Clearing this zone would confirm further bullish movement.
The recovery from previous lows around $20.00 shows strong demand and an established bullish reversal.
Conclusion and Outlook:
Bullish Case: A breakout above the $38.00 - $40.00 resistance zone with increasing volume would confirm further upside potential, with targets around $45.00 and higher.
Bearish Case: Failure to sustain above $28.00 (200 MA) could lead to a retest of lower levels, potentially invalidating the bullish trend.