Short term direction: Long
Reasons:
Starting our analysis on the monthly chart we can see, that the price has been moving in the bullish direction lately, as shown by the purple line, where we can see that the price has been forming higher highs and higher lows. The bullish price movement has stopped moving aggressively to the upside as it hit the green resistance line. The RSI is not overbought so we have no reason to believe that a major change in the price direction is going to take place soon. We are expecting the price to move in the sideways direction at the zone of resistance, and then looking for a breakout above the resistance line, making it support and supporting the next bullish move.
The daily chart shows us that a double bottom formation has formed, making the bottoms in the zone of previous support. A smaller bullish bounce has already taken place, but we believe that the move in the bullish direction should continue till the price hits the upper indicated resistance level. Before that, the price will probably make some reversals or sideways moves on its way to the resistance level.
On the four hour chart, we can see that the price was already rejected by the previously mentioned resistance line. A rather big bearish move has formed, and it stopped at the support zone, and since bounced back up and made a bullish move. The price seems to be making a channel formation, for a confirmation of the formation we are looking for the price to touch the upper resistance line and bounce back down. The bigger move should be bullish, but some smaller reversals or price consolidations could happen along the way to the resistance line.
On the hourly chart, we can see that the price movement directions in the last few days have been bullish. That is indicated by the support line, from which the price is bouncing up, forming higher highs and higher lows. As there are no obvious indicators, that a bearish price reversal is coming soon, and the direction that we believe that is going to take place on the higher timeframes is bullish, we have reason to believe that the movement on the shorter timeframe is going to be bullish as well.
We wish you good luck with your trading!
Reasons:
Starting our analysis on the monthly chart we can see, that the price has been moving in the bullish direction lately, as shown by the purple line, where we can see that the price has been forming higher highs and higher lows. The bullish price movement has stopped moving aggressively to the upside as it hit the green resistance line. The RSI is not overbought so we have no reason to believe that a major change in the price direction is going to take place soon. We are expecting the price to move in the sideways direction at the zone of resistance, and then looking for a breakout above the resistance line, making it support and supporting the next bullish move.
The daily chart shows us that a double bottom formation has formed, making the bottoms in the zone of previous support. A smaller bullish bounce has already taken place, but we believe that the move in the bullish direction should continue till the price hits the upper indicated resistance level. Before that, the price will probably make some reversals or sideways moves on its way to the resistance level.
On the four hour chart, we can see that the price was already rejected by the previously mentioned resistance line. A rather big bearish move has formed, and it stopped at the support zone, and since bounced back up and made a bullish move. The price seems to be making a channel formation, for a confirmation of the formation we are looking for the price to touch the upper resistance line and bounce back down. The bigger move should be bullish, but some smaller reversals or price consolidations could happen along the way to the resistance line.
On the hourly chart, we can see that the price movement directions in the last few days have been bullish. That is indicated by the support line, from which the price is bouncing up, forming higher highs and higher lows. As there are no obvious indicators, that a bearish price reversal is coming soon, and the direction that we believe that is going to take place on the higher timeframes is bullish, we have reason to believe that the movement on the shorter timeframe is going to be bullish as well.
We wish you good luck with your trading!