Support in Green, Resistance in Red.
Green zone is strong support (on Daily timeframe) rectangle (136-157) dating back from July 2017. The reason I say strong support is because it has never been tested since July 2017. Usually 1st rounded retest (i.e.price coming back to the level after more than 1 year) of support level always gives a solid reaction, hence high probability of a temporary bounce towards the red resistance levels above at 198 (likely) and 221 (unlikely).
Hidden bullish divergence on Daily timeframe (higher low on RSI but lower low price) clearly visible (see yellow lines on picture)
Bullish falling wedge in the making (see picture)
Overall, some good evidence of a bounce upwards. However, we are still in a bear market so counter trend trade is very risky.
Without risk there is no reward, so I'll play this based on the factors mentioned above.
Entry: Conservative Entry should be somewhere at the Green support rectangle (between 136-157). Aggressive entry can be around 180 (I've already scaled in at 180 at the time of writing this analysis, will add more if green rectangle is tested)
SL: Just below the rectangle at around 130
T1: 198
T2: 221
Decent R:R of 3.34 if T1 is hit.
Green zone is strong support (on Daily timeframe) rectangle (136-157) dating back from July 2017. The reason I say strong support is because it has never been tested since July 2017. Usually 1st rounded retest (i.e.price coming back to the level after more than 1 year) of support level always gives a solid reaction, hence high probability of a temporary bounce towards the red resistance levels above at 198 (likely) and 221 (unlikely).
Hidden bullish divergence on Daily timeframe (higher low on RSI but lower low price) clearly visible (see yellow lines on picture)
Bullish falling wedge in the making (see picture)
Overall, some good evidence of a bounce upwards. However, we are still in a bear market so counter trend trade is very risky.
Without risk there is no reward, so I'll play this based on the factors mentioned above.
Entry: Conservative Entry should be somewhere at the Green support rectangle (between 136-157). Aggressive entry can be around 180 (I've already scaled in at 180 at the time of writing this analysis, will add more if green rectangle is tested)
SL: Just below the rectangle at around 130
T1: 198
T2: 221
Decent R:R of 3.34 if T1 is hit.
Trade closed: target reached:
A perfect trade that ended up as planned.
Both targets hit. 22% profit achieved.
Both targets hit. 22% profit achieved.
Closed 50% of my position.
Will scale out of my remaining position in between current price and T2 depending on price action over next 24 hours.