The daily chart of PORTALUSDT on Binance exhibits a classic rounding bottom formation, which is typically a bullish reversal pattern.
Observations:
Rounding Bottom:
The price action from mid-March to early June clearly depicts a rounded bottom pattern.
This formation suggests a gradual transition from a downtrend to an uptrend, indicating a potential bullish reversal.
Support and Resistance:
Strong Support: The price has established a strong support level around $0.80, characterized by high trading activity.
Strong Resistance: There is a notable resistance zone around $1.00, associated with negative sentiment. Breaking through this level is crucial for confirming the bullish reversal.
Volume Analysis:
An increase in trading volume is observed during the formation of the rounding bottom, which is a positive sign of accumulation.
Watch for a volume surge if the price approaches and attempts to break the resistance zone at $1.00.
Indicators:
The Relative Strength Index (RSI) is currently at 58.46, indicating moderate bullish momentum.
The RSI has been on an upward trajectory, supporting the potential for continued upward movement.
Strategy:
Entry Point: Consider entering a long position if the price breaks above the $1.00 resistance level with a significant increase in volume, confirming the rounding bottom pattern.
Stop Loss: Place a stop loss below the strong support level at $0.80 to manage risk.
Target: The potential target can be estimated by the height of the pattern, suggesting a target around $1.60 - $1.80, which corresponds with previous resistance levels from March.
Conclusion:
The chart shows promising signs of a bullish reversal with the rounding bottom formation. Traders should monitor the price action closely for a breakout above $1.00 with increased volume to confirm the pattern. Proper risk management should be employed by observing the support and resistance levels.
Observations:
Rounding Bottom:
The price action from mid-March to early June clearly depicts a rounded bottom pattern.
This formation suggests a gradual transition from a downtrend to an uptrend, indicating a potential bullish reversal.
Support and Resistance:
Strong Support: The price has established a strong support level around $0.80, characterized by high trading activity.
Strong Resistance: There is a notable resistance zone around $1.00, associated with negative sentiment. Breaking through this level is crucial for confirming the bullish reversal.
Volume Analysis:
An increase in trading volume is observed during the formation of the rounding bottom, which is a positive sign of accumulation.
Watch for a volume surge if the price approaches and attempts to break the resistance zone at $1.00.
Indicators:
The Relative Strength Index (RSI) is currently at 58.46, indicating moderate bullish momentum.
The RSI has been on an upward trajectory, supporting the potential for continued upward movement.
Strategy:
Entry Point: Consider entering a long position if the price breaks above the $1.00 resistance level with a significant increase in volume, confirming the rounding bottom pattern.
Stop Loss: Place a stop loss below the strong support level at $0.80 to manage risk.
Target: The potential target can be estimated by the height of the pattern, suggesting a target around $1.60 - $1.80, which corresponds with previous resistance levels from March.
Conclusion:
The chart shows promising signs of a bullish reversal with the rounding bottom formation. Traders should monitor the price action closely for a breakout above $1.00 with increased volume to confirm the pattern. Proper risk management should be employed by observing the support and resistance levels.
Trade active
Scaling out 1/3 of the position here at 28% gain.
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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.
Discord: discord.gg/GCgawNmZ3A
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.