As usual, charts speak louder than words.
This one is shouting the following:
- Steady downtrending market since its IPO, as delimited by the yellow trendline, with several key touches.
- Trendline broken in December 2023.
- Breakout above the 10 EMA (roughly 200 EMA in the daily timeframe), created with the highest monthly volume this market has seen and no price x volume divergence.
Long trend?
Not just yet. The price is trading against a key congested zone, as disclosed by the Volume Profile, where bears could be sitting.
In other words, this market could be entering an accumulation stage.
A new breakout and close above the current resistance level should be the trigger for bullish trade as the sign of a fresh uptrending market.
No matter what you make of this market, please remember that risk management should be your number one concern at all times.
Cheers,
Tenacious Tribe - Backtested Trading Systems & Studies
This one is shouting the following:
- Steady downtrending market since its IPO, as delimited by the yellow trendline, with several key touches.
- Trendline broken in December 2023.
- Breakout above the 10 EMA (roughly 200 EMA in the daily timeframe), created with the highest monthly volume this market has seen and no price x volume divergence.
Long trend?
Not just yet. The price is trading against a key congested zone, as disclosed by the Volume Profile, where bears could be sitting.
In other words, this market could be entering an accumulation stage.
A new breakout and close above the current resistance level should be the trigger for bullish trade as the sign of a fresh uptrending market.
No matter what you make of this market, please remember that risk management should be your number one concern at all times.
Cheers,
Tenacious Tribe - Backtested Trading Systems & Studies