just an IDEA ( cake 1D )
As you can see and I mentioned in my previous cake chart, unless we maintain above 3$, we couldn't move upward. As you can see, because of the blue trend line, we couldn't stay above 3$, and it was a fake break.
As you know, we have been in a range box for 2 months, and based on the range box rules, if we have a fake breakout on either side, there is a high possibility of returning to the opposite side of the range box again. This clearly happened here.
Now we are in a support area. We need to see a good reaction here to determine our next steps, but consider that we still have our blue trend line and the 3-dollar resistance above us.
📊Meanwhile, our volume is decreasing, which indicates that people are tired of this range box and these prices. Due to this situation, we could see a sharp move in either direction soon.
📈 Bullish Scenario:
We are currently in a support area. We need to see a good reaction here to determine our next steps, but keep in mind that we still have our blue trend line and the 3$ resistance above us.
• If the support at $2.40 holds and the price rebounds upward, it may target the next resistance levels around $3 and potentially 3.60 TO 3.80$ . These levels align with the Fibonacci retracement levels of 0.050 to 0.061 from our recent downtrend movement, as well as the resistance indicated by our yellow trend line.
📉Bearish Scenario:
• If the price breaks below the support at 2.40 and closes and maintains there, the next target could be the support levels around 2.15.
• There are also more bearish scenarios that I don’t want to consider yet. We need to see the reaction at 2.15, and then we will think about that scenario. However, we should keep it in mind.
Keep a close watch on these levels and the overall market sentiment to make informed trading decisions.
Please let me know what you think.
As you know, we have been in a range box for 2 months, and based on the range box rules, if we have a fake breakout on either side, there is a high possibility of returning to the opposite side of the range box again. This clearly happened here.
Now we are in a support area. We need to see a good reaction here to determine our next steps, but consider that we still have our blue trend line and the 3-dollar resistance above us.
📊Meanwhile, our volume is decreasing, which indicates that people are tired of this range box and these prices. Due to this situation, we could see a sharp move in either direction soon.
📈 Bullish Scenario:
We are currently in a support area. We need to see a good reaction here to determine our next steps, but keep in mind that we still have our blue trend line and the 3$ resistance above us.
• If the support at $2.40 holds and the price rebounds upward, it may target the next resistance levels around $3 and potentially 3.60 TO 3.80$ . These levels align with the Fibonacci retracement levels of 0.050 to 0.061 from our recent downtrend movement, as well as the resistance indicated by our yellow trend line.
📉Bearish Scenario:
• If the price breaks below the support at 2.40 and closes and maintains there, the next target could be the support levels around 2.15.
• There are also more bearish scenarios that I don’t want to consider yet. We need to see the reaction at 2.15, and then we will think about that scenario. However, we should keep it in mind.
Keep a close watch on these levels and the overall market sentiment to make informed trading decisions.
Please let me know what you think.
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.