CADJPY LONG!!
Updated
https://www.tradingview.com/x/h8ef8bqY/
Trade Idea: LONG CADJPY
Entry Price: 107.170
Stop Loss: 107.00
Target Profit: 110.360
Rationale/Reasoning of Conclusion:
I've identified a potential trading opportunity in the CADJPY currency pair based on a breakout and retest of a local trendline. Here's the reasoning behind the trade idea:
Breakout and Retest Pattern: The CADJPY pair has been trading within a well-defined downtrend for the past few weeks. However, recent price action has shown signs of a potential trend reversal. The price has broken above a key local trendline, indicating a possible shift in momentum from bearish to bullish.
Retest Confirmation: After the initial breakout above the trendline, it's common to see a retest of the broken trendline as a confirmation of the new bullish sentiment. This retest serves as an opportunity to enter the trade at a favorable price point.
Supportive Technical Factors: Additionally, other technical indicators such as the moving averages (e.g., 50-day and 200-day moving averages) are starting to converge, suggesting a potential crossover and bullish shift in the short-to-medium term.
Based on the analysis of the breakout and retest pattern, as well as the supportive technical factors, I am considering a long position in CADJPY:
Entry: I will initiate a buy order at 107.170, which is slightly above the breakout point. This allows for confirmation of the breakout and participation in the potential bullish move.
Stop Loss: To manage risk, I will set a stop loss at 107.00. This level is just below the retest of the trendline, aiming to minimize potential losses in case the trade does not work out as expected.
Target Profit: I will set the target profit at 110.360, which is based on the recent swing high before the downtrend began. This level represents a reasonable bullish target for the trade.
Please note that trading involves risk, and it's important to follow proper risk management strategies. Always consider your own risk tolerance and conduct thorough research before entering any trade. Additionally, monitor the trade closely and be prepared to adjust your strategy based on changing market conditions.
Trade Idea: LONG CADJPY
Entry Price: 107.170
Stop Loss: 107.00
Target Profit: 110.360
Rationale/Reasoning of Conclusion:
I've identified a potential trading opportunity in the CADJPY currency pair based on a breakout and retest of a local trendline. Here's the reasoning behind the trade idea:
Breakout and Retest Pattern: The CADJPY pair has been trading within a well-defined downtrend for the past few weeks. However, recent price action has shown signs of a potential trend reversal. The price has broken above a key local trendline, indicating a possible shift in momentum from bearish to bullish.
Retest Confirmation: After the initial breakout above the trendline, it's common to see a retest of the broken trendline as a confirmation of the new bullish sentiment. This retest serves as an opportunity to enter the trade at a favorable price point.
Supportive Technical Factors: Additionally, other technical indicators such as the moving averages (e.g., 50-day and 200-day moving averages) are starting to converge, suggesting a potential crossover and bullish shift in the short-to-medium term.
Based on the analysis of the breakout and retest pattern, as well as the supportive technical factors, I am considering a long position in CADJPY:
Entry: I will initiate a buy order at 107.170, which is slightly above the breakout point. This allows for confirmation of the breakout and participation in the potential bullish move.
Stop Loss: To manage risk, I will set a stop loss at 107.00. This level is just below the retest of the trendline, aiming to minimize potential losses in case the trade does not work out as expected.
Target Profit: I will set the target profit at 110.360, which is based on the recent swing high before the downtrend began. This level represents a reasonable bullish target for the trade.
Please note that trading involves risk, and it's important to follow proper risk management strategies. Always consider your own risk tolerance and conduct thorough research before entering any trade. Additionally, monitor the trade closely and be prepared to adjust your strategy based on changing market conditions.
Note
I apologize for any misunderstanding. Kindly note that the stop loss indicated on the uploaded chart was incorrect. The accurate stop loss is 107.00, as detailed in the provided information. Thank you!
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