This is pure chasing of momentum. It seems like the resistance at 1.400 is broken with sufficient volume backing it. Volume increased on both buying days, denoted by the green arrows.
We do have a significant selling volume on 04 Nov 2022, hence the first TP is at 1.680.
If the price managed to break above 1.680, then this would signify that 04 Nov 2022 is a selling climax and the bottom is in. However, we do not want to assume things too soon, hence a small long position is safer to chase the 1.680 price target. If the price shows strong support beyond the 1.680 level, we can add additional positions.
This is a counter-trend trade against a restrictive macro backdrop. As such, this trade is considered contrarian. If you are already prematurely bottom picking various other trades, you may want to skip this
We do have a significant selling volume on 04 Nov 2022, hence the first TP is at 1.680.
If the price managed to break above 1.680, then this would signify that 04 Nov 2022 is a selling climax and the bottom is in. However, we do not want to assume things too soon, hence a small long position is safer to chase the 1.680 price target. If the price shows strong support beyond the 1.680 level, we can add additional positions.
This is a counter-trend trade against a restrictive macro backdrop. As such, this trade is considered contrarian. If you are already prematurely bottom picking various other trades, you may want to skip this