#CAKE: Strategic Entry on Support Breakout - Our Trade Rationale
We've decided to enter a trade on #CAKE/USDT after identifying a compelling technical setup that suggests a potential bullish reversal. Here’s a detailed explanation of our decision:
1. Descending Trendline Breakout: CAKE has been in a downtrend, confined within a descending trendline. Recently, the price has broken above this trendline, signaling a potential reversal and the start of a bullish phase.
2. Strong Support Level: The price has bounced off a strong support level around $2.20, which has held multiple times in the past. This increases the likelihood of a sustained upward movement from this level.
3. Volume Confirmation: The breakout above the descending trendline is accompanied by an increase in trading volume. This adds credibility to the breakout and suggests that the new bullish trend could sustain.
4. Bullish RSI Divergence: The Relative Strength Index (RSI) shows a bullish divergence, where the price is making lower lows while the RSI is making higher lows. This indicates a potential reversal and strengthens the bullish case.
5. Risk-Reward Ratio: Our entry point at $2.248 is well-calculated, with a stop loss set at $1.759 to manage downside risk. The target price is $5.381, providing an attractive risk-reward ratio for this trade.
In conclusion, the combination of a descending trendline breakout, strong support level, volume confirmation, and bullish RSI divergence presents a promising opportunity in CAKE. With a well-defined risk management strategy, this trade aligns with our overall trading plan. Let's see how this plays out!
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⚠️All trade ideas are published with a time delay. If you want to follow the trade in real time, please follow the link to our open copy trading account on Binance.
👉Our account with open trading, and all our other resources at this link:
https://linktr. ee/In_Trade_MLN
1. Descending Trendline Breakout: CAKE has been in a downtrend, confined within a descending trendline. Recently, the price has broken above this trendline, signaling a potential reversal and the start of a bullish phase.
2. Strong Support Level: The price has bounced off a strong support level around $2.20, which has held multiple times in the past. This increases the likelihood of a sustained upward movement from this level.
3. Volume Confirmation: The breakout above the descending trendline is accompanied by an increase in trading volume. This adds credibility to the breakout and suggests that the new bullish trend could sustain.
4. Bullish RSI Divergence: The Relative Strength Index (RSI) shows a bullish divergence, where the price is making lower lows while the RSI is making higher lows. This indicates a potential reversal and strengthens the bullish case.
5. Risk-Reward Ratio: Our entry point at $2.248 is well-calculated, with a stop loss set at $1.759 to manage downside risk. The target price is $5.381, providing an attractive risk-reward ratio for this trade.
In conclusion, the combination of a descending trendline breakout, strong support level, volume confirmation, and bullish RSI divergence presents a promising opportunity in CAKE. With a well-defined risk management strategy, this trade aligns with our overall trading plan. Let's see how this plays out!
___
⚠️All trade ideas are published with a time delay. If you want to follow the trade in real time, please follow the link to our open copy trading account on Binance.
👉Our account with open trading, and all our other resources at this link:
https://linktr. ee/In_Trade_MLN
Trade active
Trade closed: stop reached
Close: stop reached
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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.