Trade setup #ADABullish : Bullish breakout from a Channel Down pattern could signal near-term bullish trend reversal
with +10% upside to $0.52 (200-day moving average). Stop Loss (SL) at $0.43. This is a riskier trade setup
because it's a trend reversal not a trend continuation setup. It's against the overall downtrend. (set a price
alert).
Pattern: Price was trading in a Channel Down pattern. With complete patterns (i.e. a breakout) - initiate
a trade when the price breaks through the channel's trendlines, either on the upper or lower side. When
this happens, the price can move rapidly in the direction of that breakout. Learn to trade chart patterns in
Lesson 8.
Trend: Downtrend across all time horizons (Short- Medium- and Long-Term).
Momentum is Mixed as MACD Line is above MACD Signal Line (Bullish) but RSI < 45 (Bearish). MACD
Histogram bars are declining, which suggests that momentum is weakening.
Support and Resistance: Nearest Support Zone is $0.46, which it broke, then $0.35. The nearest Resistance
Zone is $0.57 (previous support), then $0.65 - $0.68, and $0.80. $ADA
