Short term direction: Long
Reasons:
Starting our analysis on the monthly timeframe, we can see that the price just made a break above the indicated line, that has previously acted as a resistance line. Now as the breakout has formed it became a support line. The RSI is on the overbought side, and the movement needs a bearish correction as it has been quite impulsive in the bullish direction lately. We expect a price reversal and a before-mentioned corrective bearish move until the price touches the support line. From there we are looking for another bullish bounce.
On the daily timeframe, we can see that the bullish movement has become a bit choppy after the initial breakout of the resistance line. For us, that is one of the signals that the bulls do not have as much strength anymore. A before mentioned bearish move will go at least to the yellow support line. From there we are looking for either a direct bounce or a breakout beneath the line and a bearish move to the blue support line and a bullish bounce.
Four-hour chart supports our thesis, that the price will make bullish bounce off the first yellow support line, that is also the lower line of the ascending triangle formation. When the price touches it we are expecting a bullish move. Looking for a breakout out of the ascending triangle formation and expecting the price to continue ints movement in the bullish direction.
The hourly chart shows us much the same, as we do expect a bearish move till the price touches the bottom triangle line, and then a bullish bounce off the line and a possible breakout out of the indicated ascending triangle formation before the price will be heading further in the bullish direction.
We wish you good luck with your trading!
Reasons:
Starting our analysis on the monthly timeframe, we can see that the price just made a break above the indicated line, that has previously acted as a resistance line. Now as the breakout has formed it became a support line. The RSI is on the overbought side, and the movement needs a bearish correction as it has been quite impulsive in the bullish direction lately. We expect a price reversal and a before-mentioned corrective bearish move until the price touches the support line. From there we are looking for another bullish bounce.
On the daily timeframe, we can see that the bullish movement has become a bit choppy after the initial breakout of the resistance line. For us, that is one of the signals that the bulls do not have as much strength anymore. A before mentioned bearish move will go at least to the yellow support line. From there we are looking for either a direct bounce or a breakout beneath the line and a bearish move to the blue support line and a bullish bounce.
Four-hour chart supports our thesis, that the price will make bullish bounce off the first yellow support line, that is also the lower line of the ascending triangle formation. When the price touches it we are expecting a bullish move. Looking for a breakout out of the ascending triangle formation and expecting the price to continue ints movement in the bullish direction.
The hourly chart shows us much the same, as we do expect a bearish move till the price touches the bottom triangle line, and then a bullish bounce off the line and a possible breakout out of the indicated ascending triangle formation before the price will be heading further in the bullish direction.
We wish you good luck with your trading!