I decided to enter a long position based on the following reasons:
Key Support Zone: The price has reached a strong horizontal level around €52, which historically served as a significant support. It is expected that this level might once again act as a reversal point.
Oversold Conditions: The current downward movement appears sharp, which could indicate temporary oversold conditions and the possibility of a corrective rebound.
Historical Bounce from the Level: The chart shows that the price has repeatedly bounced off this level in the past, creating good entry points for long positions.
Anticipation of a Reversal Candle: There is a possibility of a reversal candlestick pattern forming soon (e.g., a pin bar or engulfing pattern), which would confirm my strategy.
Medium-term Growth Potential: If the level holds, the price could return to the upper boundary of the range (around €79), making the trade potentially profitable.
Risks: If the level breaks downward, it may signal the need to reassess the position and limit losses.
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Key Support Zone: The price has reached a strong horizontal level around €52, which historically served as a significant support. It is expected that this level might once again act as a reversal point.
Oversold Conditions: The current downward movement appears sharp, which could indicate temporary oversold conditions and the possibility of a corrective rebound.
Historical Bounce from the Level: The chart shows that the price has repeatedly bounced off this level in the past, creating good entry points for long positions.
Anticipation of a Reversal Candle: There is a possibility of a reversal candlestick pattern forming soon (e.g., a pin bar or engulfing pattern), which would confirm my strategy.
Medium-term Growth Potential: If the level holds, the price could return to the upper boundary of the range (around €79), making the trade potentially profitable.
Risks: If the level breaks downward, it may signal the need to reassess the position and limit losses.
⚠️ All trading ideas are published with a time delay. If you want to follow the trading in real-time, please follow the link:
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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.