Dear Trading Community,
I would like to share my idea for the next couple of days.
This is only going to be valid if we manage to break the downward trend line.
We are seeing that price is very close to challenging the said trendline, which also coincides with the 20 EMA on the daily chart. If the resistance level at 38.800 gets penetrated with a high volume candle on the 1 h chart, then we can consider this a new level o support.
The price would then consolidate within the 39 k - 42.5 k interval, where there is a considerable recent supply zone, also coinciding with the 50 EMA. If this resistance turns to support, we can see another upside move till the 51 k area.
I also believe that the upside move till the 51 k area is also supported by an important bullish divergence on the daily chart: the MACD bottomed on 10 Dec and started printing higher lows, while the price dropped from 51 k to 33 k. The exact type of divergence had happened previously between 23 May and 20 Jul.
The 51 k level is very crucial from two perspectives:
1. It is the 0.5 Fibonacci level from the swing high of 69 k to the swing low of 33 k ;
2. It is an area where we can see a top forming and a H&S reversal;
This is not financial advice, it's only my short term opinion on how the price action could evolve in the next 2 weeks.
Always use stop loss & take profit, depending on your risk appetite, but a good place to start is 1:1.5 risk to reward. I hope you appreciate this idea !
I would like to share my idea for the next couple of days.
This is only going to be valid if we manage to break the downward trend line.
We are seeing that price is very close to challenging the said trendline, which also coincides with the 20 EMA on the daily chart. If the resistance level at 38.800 gets penetrated with a high volume candle on the 1 h chart, then we can consider this a new level o support.
The price would then consolidate within the 39 k - 42.5 k interval, where there is a considerable recent supply zone, also coinciding with the 50 EMA. If this resistance turns to support, we can see another upside move till the 51 k area.
I also believe that the upside move till the 51 k area is also supported by an important bullish divergence on the daily chart: the MACD bottomed on 10 Dec and started printing higher lows, while the price dropped from 51 k to 33 k. The exact type of divergence had happened previously between 23 May and 20 Jul.
The 51 k level is very crucial from two perspectives:
1. It is the 0.5 Fibonacci level from the swing high of 69 k to the swing low of 33 k ;
2. It is an area where we can see a top forming and a H&S reversal;
This is not financial advice, it's only my short term opinion on how the price action could evolve in the next 2 weeks.
Always use stop loss & take profit, depending on your risk appetite, but a good place to start is 1:1.5 risk to reward. I hope you appreciate this idea !