The current market structure indicates a potential bullish reversal within a broader descending channel. Following a previous decline of approximately 12.76% (−14.11 points), the price has staged a notable recovery, rallying 17.53% (+16.96 points) from a key horizontal support zone near 93.61. This area has historically acted as a demand zone, validating its significance with multiple touchpoints and a recent strong reaction.
Currently, the price action is approaching a critical resistance zone near 115.81, which also aligns closely with the upper boundary of the downward sloping blue channel. A sustained breakout above this resistance would constitute a technical breakout from the bearish structure and could signal a shift toward a medium-term bullish trend. In such a scenario, the next target would be the horizontal resistance zone around 120–122, supported by previous highs and structural confluence.
From a trade setup perspective, a long position could be considered on confirmation of a breakout and close above 115.81, with a target range of 120–122. A more conservative entry may be planned on a retest of the breakout level (115.81) as new support. Stop-loss levels could be strategically placed below the most recent higher low or the green support band near 105 to maintain a favourable risk-reward ratio. Conversely, failure to break above the resistance could trigger a reversion back to the mid-channel zone or retest of the 93.61 support level, favoring a range-bound or mean-reversion strategy in the short term.
Overall, the chart suggests a tactical bullish bias, contingent on breakout confirmation and broader market momentum.
Currently, the price action is approaching a critical resistance zone near 115.81, which also aligns closely with the upper boundary of the downward sloping blue channel. A sustained breakout above this resistance would constitute a technical breakout from the bearish structure and could signal a shift toward a medium-term bullish trend. In such a scenario, the next target would be the horizontal resistance zone around 120–122, supported by previous highs and structural confluence.
From a trade setup perspective, a long position could be considered on confirmation of a breakout and close above 115.81, with a target range of 120–122. A more conservative entry may be planned on a retest of the breakout level (115.81) as new support. Stop-loss levels could be strategically placed below the most recent higher low or the green support band near 105 to maintain a favourable risk-reward ratio. Conversely, failure to break above the resistance could trigger a reversion back to the mid-channel zone or retest of the 93.61 support level, favoring a range-bound or mean-reversion strategy in the short term.
Overall, the chart suggests a tactical bullish bias, contingent on breakout confirmation and broader market momentum.
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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.