### 1. Price Action - The chart displays a recent downtrend that has potentially reached a local bottom. - The price is currently trading at 5.181. - A significant support zone is marked in green near 4.343, extending lower to around 3.722. This suggests strong buying interest in this region. - Resistance zones are clearly identified in the chart: - First resistance (Target 1) at 7.585. - Historical resistance zone near 9.350, where the price previously reversed.
### 2. Trend Analysis - The price has bounced from the support zone near 4.343, indicating a possible reversal to the upside. - A higher low formation is expected if the price continues upward momentum, confirming the trend reversal. ### 3. Technical Levels - Support Levels: - Strong support near 4.343. - Secondary support around 3.722 (lower range of the marked green zone). - Resistance Levels: - Immediate resistance at 7.585. - Secondary resistance near 9.350 (previous high). ### 4. Potential Price Path - A corrective movement to form a higher low before reaching 7.585 is anticipated based on the drawn path. - If the price breaks and holds above 7.585, it could potentially target 9.350.
### 5. Volume Analysis - Although volume data is not visible on this chart, observing volume increases near the support zone can confirm buying pressure. ### 6. Possible Scenarios - Bullish Scenario: - If the price holds above the 4.343 support and breaks above 7.585, it can target 9.350 and beyond. - Bearish Scenario: - If the price fails to hold 4.343, it may retest the 3.722 support.
### 7. Additional Indicators: - MACD: Check if it shows bullish divergence near the support zone. - RSI: Look for oversold conditions near the bottom to confirm reversal strength. - Fibonacci Levels: Use Fibonacci retracement to align potential reversal levels.
### 8. Trading Strategy - For Buyers: - Enter near the 4.343 support with a stop-loss below 3.722. - Target 1: 7.585. - Target 2: 9.350. - For Sellers: - Watch for price rejection near 7.585 or 9.350 for shorting opportunities.