💡 Key Observations:
Divergence Detected:
RSI Analysis:
Current RSI is in the oversold zone (below 30), suggesting that sellers may be exhausted.
The divergence strengthens the case for a possible upward correction or bounce.
Probability:
Reversal/Bounce: 70%
Continuation of Downtrend: 30%
EMA Analysis (20/50/100/200):
Price has broken below the EMA 50 and EMA 100, indicating weakness, but bounced off EMA 200, hinting at possible support.
📊 Scenario Analysis:
Bullish Reversal (70%):
Bearish Continuation (30%):
📝 Conclusion:
The bullish divergence on the RSI and the bounce from EMA 200 increase the chances of a short-term rebound. If buying pressure sustains, we should expect a test of EMA 50 or EMA 100 as resistance. However, if the support at EMA 200 fails, a deeper correction is likely.
Divergence Detected:
- There is a bullish divergence between the price and the RSI on the daily chart.
- Price Action: Lower lows on the chart.
- RSI: Higher lows, signaling a potential trend reversal or weakening bearish momentum.
RSI Analysis:
Current RSI is in the oversold zone (below 30), suggesting that sellers may be exhausted.
The divergence strengthens the case for a possible upward correction or bounce.
Probability:
Reversal/Bounce: 70%
Continuation of Downtrend: 30%
EMA Analysis (20/50/100/200):
- EMA 20 (Red): Steep downward slope, indicating short-term bearish pressure.
- EMA 50 (Orange): Also pointing down, confirming mid-term bearish trend.
- EMA 100 (Light Blue): Flattening out, but still bearish.
- EMA 200 (Dark Blue): Holding as potential dynamic support.
Price has broken below the EMA 50 and EMA 100, indicating weakness, but bounced off EMA 200, hinting at possible support.
📊 Scenario Analysis:
Bullish Reversal (70%):
- Entry Point: $80,800
- Take Profit (TP): $85,000 - $88,000
- Stop Loss (SL): $78,000
- Probability: High
Bearish Continuation (30%):
- Entry Point: $80,000
- Take Profit (TP): $75,000 - $72,000
- Stop Loss (SL): $83,000
- Probability: Low
📝 Conclusion:
The bullish divergence on the RSI and the bounce from EMA 200 increase the chances of a short-term rebound. If buying pressure sustains, we should expect a test of EMA 50 or EMA 100 as resistance. However, if the support at EMA 200 fails, a deeper correction is likely.
Trade closed: target reached
Bullish Reversal scenario worked out perfectly fine.Entry Point: $80,800
Take Profit (TP): $85,000 - $88,000
Highest point was $87,453, trade was fully closed by reaching $86,000.
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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.