Trading Idea: Bullish Breakout After Support Bounce
Chart Overview:
The price has bounced off a well-established support zone (marked on the chart), showing significant rejection candles, indicating strong buying pressure at this level.
Following this bounce, the market is now consolidating in a narrow range, hinting at potential accumulation before a potential breakout.
A bullish breakout above the nearby resistance level (marked on the chart) could signal the start of a new upward move.
Trade Setup:
Entry Point: Consider entering a long position once the price breaks above the near-term resistance level (highlighted on the chart). This will indicate that the buyers are in control, and the market is likely to continue higher.
Stop Loss: Place your stop loss just below the recent swing low to protect your position in case the market moves against you.
Target 1: The initial target should be the next resistance zone or the previous price action high, as indicated on the chart.
Target 2: If momentum continues, aim for the next key resistance level further up.
Key Price Action Insights:
The support zone rejection suggests strong buyer interest, while the consolidation phase signals market indecision and a potential buildup of pressure.
The bullish breakout above the resistance will confirm the market’s shift in momentum, offering a high-probability entry for a potential uptrend.
Risk-to-Reward: Target a 2:1 risk-to-reward ratio to ensure a favorable risk profile for this trade.
The price has bounced off a well-established support zone (marked on the chart), showing significant rejection candles, indicating strong buying pressure at this level.
Following this bounce, the market is now consolidating in a narrow range, hinting at potential accumulation before a potential breakout.
A bullish breakout above the nearby resistance level (marked on the chart) could signal the start of a new upward move.
Trade Setup:
Entry Point: Consider entering a long position once the price breaks above the near-term resistance level (highlighted on the chart). This will indicate that the buyers are in control, and the market is likely to continue higher.
Stop Loss: Place your stop loss just below the recent swing low to protect your position in case the market moves against you.
Target 1: The initial target should be the next resistance zone or the previous price action high, as indicated on the chart.
Target 2: If momentum continues, aim for the next key resistance level further up.
Key Price Action Insights:
The support zone rejection suggests strong buyer interest, while the consolidation phase signals market indecision and a potential buildup of pressure.
The bullish breakout above the resistance will confirm the market’s shift in momentum, offering a high-probability entry for a potential uptrend.
Risk-to-Reward: Target a 2:1 risk-to-reward ratio to ensure a favorable risk profile for this trade.
Trade active
99889 is the next bullish FVG that price will head to
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.