Observations:
1. **Resistance Zone**:
The price has reached a key resistance level at around $1.21, where it has been rejected before. This could act as a significant resistance to the upside.
2. **Volume**:
There’s been an increase in volume, which indicates strong buying interest. However, the reaction at this resistance level will be critical.
3. **RSI**:
The RSI is at 64.41, close to the overbought level. This suggests some caution, as there could be a pullback from the resistance.
4. **MACD**:
The MACD is in positive territory, indicating bullish momentum, but you should watch for any slowdown or a possible bearish crossover near this resistance.
- **Breakout Entry**:
Enter a long position if the price closes above $1.21 on the 4-hour chart with strong volume, confirming a breakout of this resistance.
- **Pullback Entry**:
If there’s a rejection at this level, wait for a pullback to support around $1.12, which could provide a safer entry if the bullish trend continues.
Stop Loss:
- For a breakout entry, place a stop-loss slightly below the resistance level at around $1.18.
- For a pullback entry, place a stop-loss below $1.10 to protect against a deeper correction.
TAKE PROFIT:
- **First Target**: $1.30 - the next psychological resistance level.
- **Second Target**: $1.35-$1.40 range - if momentum continues and broader market conditions support an extended rally.
Summary:
- **Trend**: The trend remains bullish on this timeframe, but it’s approaching resistance.
- **Entry Options**: Breakout above $1.21 or pullback near $1.12.
- **Stop Loss**: $1.18 for breakout, $1.10 for pullback.
- **Take Profits**: $1.30 (TP1), $1.35-$1.40 (TP2).
Monitor this setup closely, as the RSI indicates that the price may be due for a minor correction.
$AGLD #agldust