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$GME Potential Movement (11/11/24)Hey Traders, NYSE:GME is back on the radar, showing its classic meme-stock momentum! On the 1-hour chart, we’re watching a solid structure here: there’s a break of structure at $25.02 that’s been tested twice today but has held as strong resistance so far. Our key support zone sits at $24.53 (previous higher high and BOS), with another potential test point nearby at $24.64. If we break through that $25 resistance on the 1-day chart, we could see a push toward the gap fill at $25.56. Stay disciplined and remember to secure those gains! David Diz-Plin Trading
NYSE:GME
by DizPlin
EUR/CAD Approaches Key Resistance Level on the Daily ChartEUR/CAD is currently trading near its highest resistance level since 2021, around 1.5200. This price zone has been tested multiple times in recent months, indicating strong resistance that the market has struggled to overcome. The repeated testing without a definitive breakout suggests that selling pressure may be building, which could lead to a reversal if the support below is breached. Key Resistance at 1.5200: This resistance level has been challenged several times, establishing it as an important psychological barrier in the market. The ongoing difficulty in breaking through this area supports the notion that a retracement could occur in the coming weeks. Support at 1.5075 (Potential Trigger Level): The 1.5075 level is identified as a significant support point in the short term. If the price drops below this level, it could generate considerable selling pressure, indicating that the pair has lost critical support and triggering potential short positions. Potential Selling Opportunities: Given the recent behavior of testing resistance and the absence of a sustained breakout to the upside, the current market structure suggests a possible sell-off. The trading plan may include: Short Entry: A short position could be considered if the price breaks below 1.5075, confirming the loss of support and signaling a potential reversal. Upon this breach, EUR/CAD could decline towards the 1.4900 level, where another crucial support area exists on the daily chart. Alternative Scenario: Conversely, EUR/CAD remains in an uptrend (as indicated by the black trendline on the chart), suggesting that a breakout above the 1.5200 resistance might still occur. If this level is surpassed and the price maintains above it, EUR/CAD may transition into a new price range. In this scenario, the current resistance might turn into support, with the potential for EUR/CAD to rise towards the 1.5350 region in the coming days, where additional resistance can be anticipated on the daily chart. Caution Against Fake Breakouts: Levels of resistance in EUR/CAD present ideal scenarios for fake breakouts that can lead many traders to incur losses. A fake breakout occurs when the price temporarily breaks above or below a relevant level, only to reverse quickly, misleading traders. These often manifest as candles with large wicks or tails. Therefore, it is crucial to seek confirmation before entering a trade to mitigate the risk of getting caught in such false movements. Monitoring Key Levels In summary, as EUR/CAD approaches significant resistance at 1.5200, traders should carefully monitor both resistance and support levels. A prudent approach will involve waiting for confirmation of price movements before entering positions, particularly in the context of potential fake breakouts. Disclaimer: 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Past performance is not necessarily indicative of future results. The value of investments may fall as well as rise and the investor may not get back the amount initially invested. This content is not intended for nor applicable to residents of the UK.
by Marketscom
Gold Rebound Strategy: Capitalizing on RBS and Bullish EngulfingTrade Idea Based on Technical Analysis: Chart Analysis: 1. Horizontal Line of Resistance Become Support (RBS): • The horizontal red line at 2,741.90 indicates a significant level where previous resistance has now become support. This RBS zone suggests a potential area where buyers might re-enter the market, providing a solid opportunity to go long if the price pulls back to this level. 2. Horizontal Line of Resistance/Support: • The price faces resistance around 2,748.94. This level has acted as a ceiling for price movements, where sellers are likely to enter. If price breaks this level, it may indicate further bullish movement, but it currently holds as a short-term resistance level. 3. Bullish Engulfing Zone (Yellow Box): • The yellow box marks a crucial bullish engulfing pattern zone between 2,737.64 and 2,740.53. This pattern indicates a strong buying momentum as the price reversed from a previous sell-off. This zone serves as a high-probability entry point for buyers. Trade Setup: • Entry Point: Look for a buy entry around the RBS level (2,741.90) or within the yellow bullish engulfing zone (2,737.64 - 2,740.53). If the price retraces into this area and shows bullish confirmation (such as a bounce or candlestick pattern), it’s a good opportunity to go long. • Target Price: The first profit target should be around the resistance level at 2,748.94. For a more aggressive approach, you can target 2,750.00, as round numbers tend to act as psychological resistance. • Stop Loss: Set your stop loss just below the engulfing zone, around 2,730.46. If the price breaks below this level, the bullish setup would be invalidated. Why I think this trade idea give chances: • The RBS level offers a strong area for a bounce, and the bullish engulfing zone indicates a reversal where buyers have taken control. These combined factors suggest the market has bullish potential, especially if price retraces to these levels. • The resistance level at 2,748.94 provides a clear exit point for taking profit, and the stop loss below the engulfing zone minimizes risk if the price goes against the trade. By waiting for price action confirmation around these key levels, this trade idea presents a well-structured and risk-managed opportunity for going long in the current market setup.
OANDA:XAUUSD
by AdibAziman_
Gold at Key Resistance: Short Opportunity Before Breakout?Based on my chart, I’m analyzing XAU/USD (Gold) on the multi-timeframe, with key levels and trendlines marked. Here’s a potential trade idea derived from this technical setup: Trade Idea: • What: Short sell (SELL) Gold (XAU/USD) around 2,734–2,735 zone. • Why: • Price Action Resistance: The price is nearing a strong resistance area around 2,735–. 2,740, indicated by the horizontal orange and red lines. These levels have acted as significant selling zones in the past, which could cause a reversal. • MSS (Market Structure Shift): There’s a shift in the market structure (MSS) slightly below, indicating a possible breakdown of bullish momentum after the recent uptrend. • Ascending Trendline: The price is currently respecting an ascending trendline (in purple), but if it breaks this support level, it could trigger more downside. • Fibonacci/Support Levels: The levels 2,730.46, 2,723.67, and 2,714.22 (orange and red lines) represent possible key retracement or support points where price could fall to if resistance holds. How: • Entry: Enter a short position near the current price of 2,734–2,735. • Stop Loss: Place your stop-loss above the resistance at 2,741 to protect against further upward movement if price breaks above this zone. • Take Profit: Target support zones at 2,730.46 (first target) and 2,723.67 (second target) for potential profit taking. Risk Management: • Ensure you manage position size to risk no more than 1–2% of your account per trade.
OANDA:XAUUSDShort
by AdibAziman_
2
GBPCAD is at its highest level since 2020. Time to sell?The GBPCAD is currently at a crucial resistance level of 1.8000, marking the highest point since 2020. The formation of a double top on the daily chart reinforces the notion of a potential bearish trend reversal. This reversal pattern indicates that the market is testing its ability to sustain prices above this resistance, yet has struggled to produce new consecutive highs, suggesting signs of buyer exhaustion. Furthermore, the emergence of a pin bar on 15 October highlights a clear rejection of prices above 1.8000, illustrating that the market has rejected attempts to breach this resistance and swiftly retreated to lower levels. The pin bar is recognised as a reversal candle with significant bearish implications, indicating profound selling pressure. When this pattern occurs at important resistance zones, as seen in this case, it increases the probability of a downward movement. Key Technical Indicators: Price at its highest level since 2020 at 1.8000. Formation of a double top on the daily chart. Classic bearish divergence on the daily chart. Formation of a pin bar indicating rejection of buying strength. Potential for Downward Movement Considering the above elements, a selling strategy could be justified if the price successfully breaks below the support level of 1.7920. This support level would serve as a trigger for confirming the anticipated downward movement. A breach of this level would indicate a loss of buying strength, paving the way for a sell-off towards lower support levels, such as 1.7750 and 1.7550. Alert for Traders In conclusion, the current market conditions and technical patterns suggest a bearish reversal may be on the horizon for GBPCAD. Traders should keep a close eye on the key support level of 1.7920, as a break below this point may present a valuable selling opportunity in the market. Disclaimer: 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Past performance is not necessarily indicative of future results. The value of investments may fall as well as rise and the investor may not get back the amount initially invested. This content is not intended for nor applicable to residents of the UK.
Short
by Marketscom
Mastering Support and Resistance: An Essential Tools for SuccessSupport and resistance are cornerstone principles in trading, offering crucial insights into price dynamics and market behavior. These levels act as key indicators, signaling points where an asset's price is likely to either pause or reverse direction. Support refers to the price level where strong demand prevents further declines, while resistance marks the point where selling pressure halts a price rise. Understanding and effectively utilizing these concepts can make a significant difference in trading success. In the realm of technical analysis, which focuses on using historical market data to predict future price movements, understanding support and resistance is essential. Traders rely on these levels to pinpoint optimal trade entry and exit points while also managing risk effectively. By recognizing where the market may reverse or maintain its trajectory, traders can craft more robust strategies. Decoding Support and Resistance Levels Support and resistance levels are vital price points on a chart that traders use to forecast future market behavior. Support represents a level where a downtrend is likely to pause, driven by a concentration of buying interest. In other words, it's the price point where demand is strong enough to stop further declines. For instance, if a stock repeatedly drops to $100 and then bounces back, $100 becomes a recognized support level. On the flip side, resistance is the price level where an uptrend often halts due to a high volume of sellers. Unlike support, resistance is where selling pressure overpowers buying interest, preventing prices from climbing further. If a stock consistently hits $150 and then retreats, $150 serves as a resistance level. Example Support and Resistance on Silver These levels are significant because they represent psychological thresholds for market participants. When prices approach support, buyers may step in, seeing it as a good entry point. Conversely, when prices near resistance, sellers might take action, expecting the price to struggle moving higher. Understanding how these levels work helps traders refine their timing and make more informed decisions. The Impact of Support and Resistance in Technical Analysis Support and resistance are pivotal in technical analysis, guiding traders in interpreting market movements and predicting future price trends. These levels act as psychological barriers that help determine whether a price trend will persist or reverse. For example, if a stock repeatedly approaches a resistance level but fails to break through, traders may interpret this as strong selling pressure and consider selling or shorting the asset. Conversely, if a price consistently rebounds off a support level, traders might see it as a buying opportunity. Example Resistance and Support on Apple Stock Visual tools like charts and diagrams are indispensable for identifying support and resistance levels. By drawing horizontal lines at points where the price has historically reversed, traders can easily spot critical levels and predict potential market movements. These visual aids enhance decision-making by providing a clear picture of where key price barriers lie. The Crucial Role of Support and Resistance Levels in Trading Strategies Support and resistance levels are the foundation of successful trading strategies, offering traders the tools to optimize entry and exit points, maximize profits, and manage risks effectively. For example, when a price hovers near a support level, a trader might take a long position, anticipating a rise in value. Simultaneously, they could place a Stop Loss just below the support level to limit potential losses if the price unexpectedly drops. Similarly, resistance levels provide invaluable insights for deciding when to exit trades or set profit targets. If a price approaches resistance, it might be wise to close a position to secure gains or prepare for a possible reversal. Understanding and identifying support and resistance levels also play a vital role in risk management. Setting Stop Loss orders near these levels helps traders protect their capital from significant losses if the market turns against them. This disciplined approach not only enhances profitability but also promotes long-term success in trading. Different Forms of Support and Resistance Support and resistance levels come in various forms, each providing unique perspectives on market behavior. The most common types include horizontal levels, trendlines, and moving averages. --Horizontal Support and Resistance: These levels are drawn at points where the price has consistently reversed in the past, making them straightforward and widely recognized. Horizontal Resistance on Tesla Stock --Trendline Support and Resistance: Trendlines connect a series of higher lows in an uptrend or lower highs in a downtrend, acting as dynamic support and resistance. In an uptrend, the trendline can signal buying opportunities, while in a downtrend, it might serve as resistance. Trendline Support on EUR/USD --Moving Averages: Moving averages, such as the 50-day or 200-day average, often act as support or resistance. For instance, during an uptrend, a pullback to the 50-day moving average can indicate a buying opportunity. Moving Averages Used as Support and Resistance on USD/CAD How to Identify Key Support and Resistance Levels To identify strong support and resistance levels, traders use several strategies: --Spot Price Clusters: Look for areas where the price consistently reverses direction, signaling strong support or resistance zones. --Use Technical Indicators: Tools like Fibonacci retracements help identify potential reversal levels during pullbacks by dividing a price move into key percentages (38.2%, 50%, and 61.8%). Fibonacci Tool used as Support and Resistance areas on DXY Common Pitfalls When Using Support and Resistance in Trading While support and resistance are essential, there are common mistakes traders should avoid: --Over-Reliance on Exact Numbers: Support and resistance are better viewed as zones rather than exact values. Prices may fluctuate slightly above or below these levels before reversing. --Ignoring Confirmation Signals: Jumping into trades without confirmation can lead to losses. Always look for signs like candlestick patterns or increased volume to confirm that the level will hold. --Chasing Breakouts Too Hastily: Not all breakouts result in sustained trends. Waiting for confirmation, such as increased volume, helps avoid being caught in a false breakout. --Impatience: Many traders act prematurely at support or resistance levels. Patience is key—stick to your trading plan and wait for the right setup. Advanced Strategies for Support and Resistance Trading For more experienced traders, support and resistance levels can serve as the basis for advanced strategies: --Breakouts: A breakout occurs when the price moves above resistance or below support, often signaling the start of a new trend. Confirming breakouts with increased volume helps reduce the risk of false signals. Breakout Confirmation on BTC --Fakeouts: Prices may temporarily breach support or resistance before reversing direction. Advanced traders capitalize on these by waiting for the price to return within the range and then taking positions in the opposite direction. Fakeouts on BTC --Reversals: Traders use reversal strategies when the price changes direction after hitting support or resistance, often signaling the start of a new trend. Area $72000 resistance used as reversal on BTC Conclusion Mastering support and resistance levels is vital for any trader aiming for long-term success. These concepts are the backbone of technical analysis, guiding traders in making informed decisions about when to enter, exit, and manage risks. By understanding and identifying key support and resistance zones, traders can predict price movements, spot opportunities, and refine their strategies. Incorporating technical analysis into your trading routine will boost your confidence in navigating the market. Whether you’re a beginner or a seasoned trader, honing your skills with support and resistance can lead to more disciplined and profitable trading.
Editors' picks
Education
by FOREXN1
14
$AVGO | Watchlist | Buy Limit |Technical Confluences: - Stochastics is moving towards Oversold conditions - Elliot Wave count seems to have completed a Wave 4 (A,B,C count) and is starting it's Wave 5 move (assuming it is not an extended Wave 4 - Price has formed new Supply Zone area with the price rejecting that Zone 3 times and has formed a descending Trendline Fundamental Confluences: - Broadcom is considered a leader in semiconductor domains and it has a diverse product range; making them sought after in technological ecosystem - Good management team that focuses on M&A for strategic growth and market pentration - Good amount of FCFs which helps in their dividend policies ----- NASDAQ:AVGO will be releasing it's earnings soon and if there is any opportunity arising, I have placed orders to buy AVGO at my Buy Limit Zone areas. If earnings is stellar, price should continue to test the Supply Zone again and if that breaks, I will likely aim for a Buy Stop order above the Supply Zone. Will be putting this on my Watchlist. -----
NASDAQ:AVGOLong
by weekendanalyst
TASI: At Resistance_Sideways ExpectedTASI is receiving resistance from 12,325 level (a significant level). Gap up opening was filled yesterday and the downtrend continues after taking correction from the specified resistance level (12,325). Profit booking due to Week and Month closure will also drag the index down further to the levels of 12,000.00 (A significant/psychological support level). It is expected that the price may remain sideways for a while between these two levels 12,000 to 12,325 (a good sign to build up foundation for further upside movement). On weekly timeframe, price is moving in the same way (flipped) as in recent past. Watchout for September events in US market. Overall, We are Bullish on TASI. Trade individual stocks with proper risk management. Happy Trading!
TADAWUL:TASI
by YASIRWA
Ichimoku Watch: Salesforce Poised to Breakout Higher?Upcoming Earnings Salesforce, Inc. (ticker: CRM) is scheduled to report earnings after the market closes on 28 August. The consensus earnings per share (EPS) estimate for the fiscal quarter ending July 2024 is $1.73. The reported EPS for the same quarter a year prior was $1.63. Vulnerable Resistance? Resistance is currently being tested at US$263.42 but shows signs of giving way. While a head-and-shoulders top pattern was recently completed at the underside of the aforementioned resistance (this is more visible on the H1 chart), which could see short-term shorts enter the market and aim at the pattern’s profit objective of around US$253.63, sellers have been unwilling to demonstrate much commitment at resistance in recent trading. Ichimoku Support You can see price action closed above the Ichimoku Indicator’s Conversion Line (blue at US$260.27) as well as the Base Line (red at US$260.19), and the Ichimoku Cloud is seen nearby. This comprises the Leading Span B (light orange at US$251.40) and the Leading Span A (light green at US$260.33). As a result, the stock has sufficient support to withstand selling. Should a breakout to the upside occur, this could trigger breakout buy-stops and power a move towards the next layer of resistance coming in at US$279.28. Price Direction Although sellers may enter the market from current resistance, the nearby Ichimoku support and the lack of bearishness could eventually stir up a bullish move to target fresh resistance at US$279.28.
NYSE:CRMLong
by FPMarkets
Applying Fan's Principle on XCHANGING!Fan Pattern in NSE:XCHANGING ! 3rd Fan Line Breakout in XCHANGING! XCHANGING SOLUTION Analysis on a Monthly Time Frame! Analysis: Hello all, as you can see I have applied the Fan Principle on XCHANGING SOLUTION, It is a type of Multi time frame analysis, Where we can draw multiple trendlines from an All-Time High price point. As per the Fan's Principle, there is a trend reversal When the price breaks the 3rd Fan Line. Disclaimer = Consider my analysis for Educational Purposes only. Before entering into any trade - 1) Educate Yourself 2) Do your research and analysis 3) Define your Risk to Reward ratio 4) Don't trade with full capital
NSE:XCHANGINGLong
by Avinash9087
Resistance on AUD/USD Ahead of CPI InflationThe AUD/USD currency pair (Australian dollar versus the US dollar) is on track to snap a two-month winning streak. It is down nearly -2.0% month to date, largely driven by risk sentiment. Monthly and Daily Resistance Levels Technically, the AUD/USD faded monthly resistance at $0.6670, which combines with the upper boundary of a symmetrical triangle, or ‘coil’, taken from $0.7158 and $0.6170. Adding ‘technical’ weight to said resistances is the Relative Strength Index (RSI) remaining south of the 50.00 centreline since April 2022, indicating negative momentum. On the daily timeframe, last week’s precipitous decline breached several key support levels, including $0.6580 and $0.6591, leaving both levels open for a retest this week. Another notable observation is the scope to continue exploring deeper water until reaching support from $0.6488 (you will note that this area also represents Quasimodo support). Price Direction Overall, the trend direction is relatively difficult to define at the moment. Therefore, recent downside sentiment, coupled with daily resistance, could be something sellers show interest in if tested, targeting daily support at $0.6488. As a note, do remain aware that we have Aussie Consumer Price Index (CPI) inflation out on Wednesday. These numbers have proven rather sticky in 2024, leading the Reserve Bank of Australia to strike a hawkish tone in recent meetings – a 20% chance of a hike is currently priced in for the August meeting. Should inflation come in hotter than expected this week, this could see rate-hike expectations increase and would place current daily resistance in a tricky spot. On the flip side, current resistance could be worthy of attention should a downside surprise in data materialise.
Short
by FPMarkets