Technical Analysis (Chart Evaluation)
1. General Appearance:
• The price is limited by two important falling trend lines throughout the downtrend. These trend lines suggest that the price remains under downward pressure for an extended period of time.
• However, in the current situation, the price has started to show an upward trend by breaking these downward trend lines upwards.
2. Target and Price Levels:
• First Target Area: 0.2400 – 0.3000 level seems to be the target of the short-term rise. Strong resistances are likely to be encountered at this level.
• Second Target Zone: 0.4800 and above, potential target if the trend continues stronger.
• Potential Maximum Target: The 0.7500 level can be considered as a longer-term target if the upward movement continues.
3. Support and Resistance Levels:
• Support Levels:
• The 0.1200 and 0.1500 levels should be monitored as strong support areas. Below these levels, the price decline may accelerate.
• Resistance Levels:
• The 0.2400 level is a critical resistance area. If the price breaks this level, the rise may accelerate.
• The 0.3000 – 0.3200 region should be watched as the upper resistance area.
4. Indicators:
• Moving Averages: The price is moving above the short-term moving averages, supporting bullish momentum.
• Volume: Increasing volume during the breakout confirms the strength of the rally. Continued increase in volume increases the potential for further price moves higher.
5. Formations and Formation Reversals:
• Falling Wedge Formation: A falling wedge formation, where the price breaks upwards, gives a strong bullish signal. This formation usually indicates that the price will continue upwards.
• Trend Break: An upward breakout of a downtrend indicates a positive change in the general trend direction.
6. Trend Direction:
• Short Term Trend: Up
• Medium Term Trend: The upward trend continues.
• Long-Term Trend: The uptrend is confirmed, but the major resistance levels must be broken.
7. Strategy and Recommendations:
• Buying Strategy: Buying can be done from the levels where the falling trend line is broken. The confirmation candle that comes after the breakout is suitable for the buying strategy.
• Stop-Loss: It is recommended to place a stop-loss below the 0.1200 level for risk management purposes.
• Profit Taking: Gradual profit taking can be done at the levels of 0.2400, 0.3000 and 0.4800.
• Volume Tracking: For the rise to continue, the increase in volume must continue. If the volume decreases, the strength of the rise may decrease.
Conclusion:
• As long as it remains above the rising trend line, the rise can be expected to continue. The breaking of the falling wedge formation should be considered as confirmation of the upward movement of the price. Support and resistance levels should be closely monitored and risk management should not be neglected.
