$WIF , here’s a technical analysis for both the 4H and 1D charts:
4-Hour Chart Analysis:
Moving Averages: The price is currently trading above the MA7 (1.959) and EMA7 (1.956), suggesting strong short-term bullish momentum. However, the price is approaching the upper Bollinger Band, indicating potential overbought conditions.
RSI (Relative Strength Index): RSI6 is at 69.07, indicating near overbought conditions but not in extreme levels yet. The RSI values (6, 12, 24) are above 65, which means the asset has strong buying pressure.
Volume: There is a slight volume increase (1.33M) compared to the MA10 of 2.34M, which may support the ongoing move, but it's not extremely high.
Patterns: There doesn’t seem to be a clear wedge or pennant pattern, but the overall price action has made a higher high recently, which could indicate continuation in the uptrend. The current price behavior appears to be forming a short-term ascending channel.
Bias: Short-term bullish. However, the price is nearing resistance at the top of the Bollinger Bands, which may lead to consolidation or slight pullback.
4H Entry:
Entry Point: On a retest of 1.890-1.920 (if there is a pullback) to catch a better risk/reward ratio.
Stop Loss: Below 1.850 to protect against a reversal.
Take Profit: Initial target around 2.080, and if bullish momentum sustains, 2.150 could be possible.
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1-Day Chart Analysis:
Moving Averages: The price is above all major moving averages (MA7, MA14, and MA28). The 1D MA7 is at 1.821, and the price is significantly above it at 1.995, showing strong bullish momentum. The price has also broken above the 1D EMA28 (1.688), indicating that a bullish trend is intact.
RSI (Relative Strength Index): RSI6 is in the overbought zone at 80, which can signal that a correction or pullback may happen in the near term. The RSI24 is at 57.457, signaling that the longer-term momentum is still positive.
Volume: On the daily chart, volume shows a moderate increase with a recent spike (4.22M vs. MA5 of 8.15M). This may suggest that buyers are stepping in.
Patterns: A possible breakout from a consolidation zone that lasted from early August to mid-September. There may be a rounding bottom formation indicating a reversal from bearish to bullish.
Bias: Mid-term bullish, though caution is required as the RSI is in overbought territory.
1D Entry:
Entry Point: A pullback to the 1.900-1.950 zone for a safer entry point.
Stop Loss: Below 1.750 to manage risk, as a break below this could indicate a trend reversal.
Take Profit: Initial target around 2.150, with an extended target near 2.300 if bullish momentum continues.
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Summary Prediction:
4H: Bullish bias with potential for short-term consolidation before the next leg up. Watch for potential resistance around 2.080.
1D: Strong bullish trend, but RSI suggests overbought conditions. A potential minor pullback to 1.900-1.950 would present a good buying opportunity.
Careful monitoring of volume and RSI is recommended to assess if the current bullish momentum can sustain or if a correction is due soon. #Write2Earn! #write2earn #TradingSetup
