NXT Bullish Divergence

Price bounced from 0.070000 support level. RSI confirms price reversal and do it in the oversold zone. MACD histogram confirms up movement. DMI does not confirm strong down movement and it allows open long trades. Price diverges with RSI and MACD histogram and it gives us a trend reversal signal. We have long opportunity. We could open long trades but price dropped below 0.100000 support level. Now this level is a barrier for possible up movement and it plays as a resistance level. We have to wait when price returns above 0.100000 and only after that we should open long trades with stop below 0.070000 level. Profit target for long trades must be at MA100 and 0.130000 resistance level. Bullish divergence is a strong reversal signal in falling markets. But not always price moves up after such signals. That's why proper money management is the key to stable and profitable trading. Don't forget about it when you open new long trades.