If we look at , we'll see a possible reversal. The market can be oversold as the line of reached the oversold zone. histogram starts an upward movement. These signals allow us to think about a correction movement in the structure of the . Also, the price is not far from the next support at 2.40 and reversing from this zone with further upward movement, it will be a logical market movement.
How far will the price be able to move upward? As we have the and there are no trend reversal signals, we should expect that the correction movement will be with targets at higher resistance levels and SMAs with 50 and 100 periods. The price action at the formed by SMA100 and 3.00 will be important for the further market movements as the market will be able to confirm the trend reversal.
How to trade:
- long positions with close profit targets at 2.60 , SMA50, and SMA100, stop orders below 2.40
- short positions from SMA50 and SMA100 with profit targets at support levels and stop orders above the local swing highs.