Wait for the breakout!
1-Hour Chart Analysis:
1. Symmetrical Triangle Formation:
• The price is consolidating within a symmetrical triangle. This pattern suggests indecision in the market and typically precedes a breakout, either upward or downward.
• Key levels to watch:
• Breakout above 21,400: Indicates bullish momentum, potentially targeting higher resistance levels.
• Breakdown below 21,200: Suggests bearish momentum, with the next support zone near 20,900–20,874.
2. MACD Indicator:
• The MACD is neutral to slightly bearish, with a potential crossover below the signal line, indicating decreasing bullish momentum.
• If the histogram turns positive after the breakout, it will confirm bullish continuation.
3. Key Support and Resistance:
• Resistance: 21,400 (triangle resistance and recent highs).
• Support: 21,200 (triangle support and previous structure).
5-Minute Chart Analysis:
1. Range-Bound Movement:
• The price is consolidating near the 21,300 level, forming a tight range with minor bullish momentum.
• Breakout above the 21,340–21,350 resistance on this timeframe could lead to a retest of 21,400 on the higher timeframe.
2. MACD Indicator:
• The MACD on the 5-minute chart shows increasing bullish momentum, with the histogram turning green. This aligns with a potential short-term breakout.
3. Volume:
• Look for increased volume on the 5-minute chart to confirm a breakout direction.
Trading Scenarios:
Bullish Case:
• If the price breaks above 21,400 (on the 1-hour chart), it could rally to:
• 21,500: Immediate resistance.
• 21,750: The next major resistance zone.
• Entry: Upon confirmed breakout above 21,400.
• Stop Loss: Below 21,200 (triangle support).
• Take Profit: 21,500–21,750.
Bearish Case:
• If the price breaks below 21,200, expect a move down to:
• 20,900–20,874: Key support zone from previous lows.
• Entry: Upon confirmed breakdown below 21,200.
• Stop Loss: Above 21,400 (triangle resistance).
• Take Profit: 20,900–20,874.
Key Notes:
• Symmetrical triangles are neutral patterns, so wait for a breakout confirmation in either direction before entering trades.
• Use smaller timeframes (like the 5-minute chart) to identify breakout momentum early.
• Monitor volume and MACD on both timeframes for added confluence.
1. Symmetrical Triangle Formation:
• The price is consolidating within a symmetrical triangle. This pattern suggests indecision in the market and typically precedes a breakout, either upward or downward.
• Key levels to watch:
• Breakout above 21,400: Indicates bullish momentum, potentially targeting higher resistance levels.
• Breakdown below 21,200: Suggests bearish momentum, with the next support zone near 20,900–20,874.
2. MACD Indicator:
• The MACD is neutral to slightly bearish, with a potential crossover below the signal line, indicating decreasing bullish momentum.
• If the histogram turns positive after the breakout, it will confirm bullish continuation.
3. Key Support and Resistance:
• Resistance: 21,400 (triangle resistance and recent highs).
• Support: 21,200 (triangle support and previous structure).
5-Minute Chart Analysis:
1. Range-Bound Movement:
• The price is consolidating near the 21,300 level, forming a tight range with minor bullish momentum.
• Breakout above the 21,340–21,350 resistance on this timeframe could lead to a retest of 21,400 on the higher timeframe.
2. MACD Indicator:
• The MACD on the 5-minute chart shows increasing bullish momentum, with the histogram turning green. This aligns with a potential short-term breakout.
3. Volume:
• Look for increased volume on the 5-minute chart to confirm a breakout direction.
Trading Scenarios:
Bullish Case:
• If the price breaks above 21,400 (on the 1-hour chart), it could rally to:
• 21,500: Immediate resistance.
• 21,750: The next major resistance zone.
• Entry: Upon confirmed breakout above 21,400.
• Stop Loss: Below 21,200 (triangle support).
• Take Profit: 21,500–21,750.
Bearish Case:
• If the price breaks below 21,200, expect a move down to:
• 20,900–20,874: Key support zone from previous lows.
• Entry: Upon confirmed breakdown below 21,200.
• Stop Loss: Above 21,400 (triangle resistance).
• Take Profit: 20,900–20,874.
Key Notes:
• Symmetrical triangles are neutral patterns, so wait for a breakout confirmation in either direction before entering trades.
• Use smaller timeframes (like the 5-minute chart) to identify breakout momentum early.
• Monitor volume and MACD on both timeframes for added confluence.
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.