On the monthly chart of $FIL , a descending triangle pattern has been forming since early 2023, with strong support at $3.50 and dynamic resistance that continues to decline. Currently, the price has shown significant accumulation in the support area, indicating a potential trend reversal in the medium to long term.
If the price manages to break through the main resistance around $20.14, this will be a strong bullish breakout signal. The first upside target after the breakout is at $27.50, which is the previous resistance zone and an important area for traders to watch for selling pressure. Furthermore, if the bullish momentum continues, the next target is in the range of $37.50 to $42.50, which is a historical resistance level as well as a potential new distribution zone.
However, if the price fails to break through the $20.14 resistance or falls back below the $3.50 support, this could open up opportunities for a continuation of the bearish trend. In a bearish scenario, the price could potentially fall towards the next psychological support level, but given the accumulation pattern seen, this scenario is less likely.
Additional indicators such as trading volume suggest a reduction in selling pressure, supporting the possibility of a bullish breakout. Traders are advised to watch for confirmation of a breakout above $20.14 with high volume before taking a position to capitalize on the opportunities of a larger uptrend.