There are a few things to pay attention to on the chart here
- First we notice that price has reached a convergence between a short term down trend and long term up trend, the implication here is that we should expect a break out
- Second we also have a support level that we are retesting here forming a potential double bottom
- Third we notice that the RSI is show us some bullish divergence, we have a double bottom on price but a lower low on the RSI.
- Finally on the MACD we can see that the lines are showing signs of curling up indication that there could be an incoming bullish cross
Over all we see signals that a long here would be a solid trade using the uptrend line as our stop / invalidation level
*** Caution ***
This is a 4 hour chart - these trades are typically going to last 3-5 days so stay on top of it
- First we notice that price has reached a convergence between a short term down trend and long term up trend, the implication here is that we should expect a break out
- Second we also have a support level that we are retesting here forming a potential double bottom
- Third we notice that the RSI is show us some bullish divergence, we have a double bottom on price but a lower low on the RSI.
- Finally on the MACD we can see that the lines are showing signs of curling up indication that there could be an incoming bullish cross
Over all we see signals that a long here would be a solid trade using the uptrend line as our stop / invalidation level
*** Caution ***
This is a 4 hour chart - these trades are typically going to last 3-5 days so stay on top of it
Trade closed: stop reached:
uptrend broke hitting our invalidation/ stop level. Next step is to keep an eye on the downtrend line and look for the next opportunity