Double Bottom Pattern Formation - Potential Bullish Reversal
The price chart suggests a potential Double Bottom pattern forming around the key support level of 86,000. This pattern is a classic bullish reversal signal, indicating the possibility of a trend change from bearish to bullish.
Key Observations:
Support Zone: The area near 86,000 has acted as a strong support, marking the lowest point in the current pattern.
Neckline Resistance: The interim resistance around 89,920 is critical. A breakout above this level would confirm the Double Bottom pattern.
Bullish Target: Once the pattern is confirmed, the price may aim for the next resistance at 93,000.
Trade Plan:
Entry Strategy:
Conservative: Enter a long position upon a confirmed breakout above 89,920.
Aggressive: Consider buying near 86,000, placing a tight stop loss below this level.
Stop Loss:
Place a stop loss slightly below 86,000 for aggressive entries.
For breakout entries, use a stop loss below 89,000.
Take Profit Levels:
First Target: 91,000 (short-term resistance).
Second Target: 94,000 (major resistance zone).
This analysis assumes market volatility aligns with the identified pattern and no major fundamental news disrupts the trend. Always apply proper risk management strategies.
Key Observations:
Support Zone: The area near 86,000 has acted as a strong support, marking the lowest point in the current pattern.
Neckline Resistance: The interim resistance around 89,920 is critical. A breakout above this level would confirm the Double Bottom pattern.
Bullish Target: Once the pattern is confirmed, the price may aim for the next resistance at 93,000.
Trade Plan:
Entry Strategy:
Conservative: Enter a long position upon a confirmed breakout above 89,920.
Aggressive: Consider buying near 86,000, placing a tight stop loss below this level.
Stop Loss:
Place a stop loss slightly below 86,000 for aggressive entries.
For breakout entries, use a stop loss below 89,000.
Take Profit Levels:
First Target: 91,000 (short-term resistance).
Second Target: 94,000 (major resistance zone).
This analysis assumes market volatility aligns with the identified pattern and no major fundamental news disrupts the trend. Always apply proper risk management strategies.
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.