Your analysis highlights a strong short-term bullish setup for $ADX . Here's a breakdown of the strategy and key considerations:
Trade Setup
1. Entry Point: Near $0.2696, as the price shows bullish momentum.
2. Targets:
First Target (T1): $0.2730 (near-term resistance).
Second Target (T2): $0.2800 (next resistance zone).
Extended Target: $0.2837 (recent high).
3. Stop-Loss: $0.2600, placed below recent support to limit risk.
Indicators to Watch
RSI (Relative Strength Index): At 81, it signals overbought conditions, but this is often normal in strong uptrends. Monitor for divergences.
MACD: Confirmation of bullish crossover or sustained momentum will strengthen the trade setup.
Volume: Increasing volume is crucial for confirming the breakout above $0.2730.
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Risk-Reward Ratio
Risk: ~$0.0096 per unit (entry at $0.2696, stop-loss at $0.2600).
Reward:
T1: ~$0.0034 per unit ($0.2730).
T2: ~$0.0104 per unit ($0.2800).
Extended: ~$0.0141 per unit ($0.2837).
Risk-reward improves significantly toward T2 and the extended target.
Potential Scenarios
Bullish Case: Price breaks above $0.2730 with strong volume and MACD support, heading toward $0.2800 or higher.
Bearish Case: If $0.2600 is breached, momentum may shift, and further downside to $0.2500 is possible.
Would you like further analysis on the overall trend or other timeframes?