Short term direction: Long
Reasons:
Looking at the monthly chart, we can see that the price just stopped at an area that has been already playing the role of both support and resistance in the past. The general trend on this timeframe is bearish, but the price has already been rejected once off this line so it is indeed a strong support line. As the RSI is not either overbought or oversold we do not expect any anomalies in the price movement and are expecting the support line to hold and force the price to make another bullish bounce.
On the daily chart, we can see that the price has been making bearish breakouts beneath the indicated support line lately, but every breakout has been rejected either by the support line or the one indicated beneath that also represents a major support/resistance area. The RSI is one the oversold side, the support has held its ground in the past days so we do expect the price to make a reversal and a bullish move above the indicated support line.
On the four hour chart, we can see that the support held once and one time was broken, but the support below held. As we are not sure where the price reversal is going to take place we are placing our stop loss just beneath the lower support line. We do however expect the reversal to happen before the price hits the lower support line as RSI is showing that the price is really low compared to the strength of the financial asset.
On the hourly chart, we can see that a breakout beneath the indicated support line has already happened, but it has struggled a bit as a sideways move has formed at the support area. The RSI is beginning to get oversold so we do expect the line to hold and the price to make a reversal and move in the bullish direction. The previous support line could act as resistance now and the price may reverse upon hitting it.
We wish you good luck with your trading!
Reasons:
Looking at the monthly chart, we can see that the price just stopped at an area that has been already playing the role of both support and resistance in the past. The general trend on this timeframe is bearish, but the price has already been rejected once off this line so it is indeed a strong support line. As the RSI is not either overbought or oversold we do not expect any anomalies in the price movement and are expecting the support line to hold and force the price to make another bullish bounce.
On the daily chart, we can see that the price has been making bearish breakouts beneath the indicated support line lately, but every breakout has been rejected either by the support line or the one indicated beneath that also represents a major support/resistance area. The RSI is one the oversold side, the support has held its ground in the past days so we do expect the price to make a reversal and a bullish move above the indicated support line.
On the four hour chart, we can see that the support held once and one time was broken, but the support below held. As we are not sure where the price reversal is going to take place we are placing our stop loss just beneath the lower support line. We do however expect the reversal to happen before the price hits the lower support line as RSI is showing that the price is really low compared to the strength of the financial asset.
On the hourly chart, we can see that a breakout beneath the indicated support line has already happened, but it has struggled a bit as a sideways move has formed at the support area. The RSI is beginning to get oversold so we do expect the line to hold and the price to make a reversal and move in the bullish direction. The previous support line could act as resistance now and the price may reverse upon hitting it.
We wish you good luck with your trading!