📊 Falling Wedge Breakout Forming 🚀
SMCI is showing signs of a bullish reversal after a strong downtrend. Price is consolidating inside a falling wedge pattern and now testing support near $36.55. This setup offers a high reward-to-risk opportunity for an upside breakout.
✅ Trade Plan (Long Position)
• Entry: Above $37.05 (wedge breakout confirmation)
• Stop-Loss: Below $35.44 (structure support + wedge base)
🎯 Take Profit Targets:
• TP1: $39.82 (key resistance zone)
• TP2: $43.32 (major recovery level)
• TP3: $44.00+ (extended upside zone)
📈 Risk-Reward Breakdown
• Risk: $37.05 - $35.44 = $1.61
• Reward to TP1: $2.77 → ~1:1.7
• Reward to TP2: $6.27 → ~1:3.9
• Reward to TP3: $6.95 → ~1:4.3
💡 Strong potential with price bouncing near demand + wedge breakout.
🔍 Technical Analysis
✅ Falling Wedge Pattern: Classic bullish reversal setup
✅ Support Zone: Horizontal and diagonal support at $36.55
✅ Volume Check: Monitoring for spike as confirmation
✅ Price Action: Buyer reaction visible near lower trendline
🧠 Strategy & Risk Management
• Wait for a 30-min candle close above $37.05 to confirm breakout
• Move SL to breakeven after hitting TP1 at $39.82
• Take 50% profit at TP1, ride remaining position toward TP2 & TP3
• Protect gains with a trailing stop on higher timeframe
📚 Value for Traders:
This setup is a great example of how falling wedges often signal trend exhaustion. Combined with support and declining volume, it suggests a shift in momentum. Breakouts from such structures can be explosive when confirmed with price and volume.
⚠️ Risk Factors
❌ Weak breakout without volume
❌ Breakdown below $35.44 invalidates the setup
✅ Focus on execution and not prediction
🎯 Final Thoughts
High-probability long opportunity on a quality setup.
Follow the plan. Stick to the levels. Let the chart lead the way. 📈
🔗 #SMCI #StockSetup #ProfittoPath #BreakoutStrategy #ChartAnalysis #TradingView #SmartTrading #BullishReversal #FallingWedge 💰📊
SMCI is showing signs of a bullish reversal after a strong downtrend. Price is consolidating inside a falling wedge pattern and now testing support near $36.55. This setup offers a high reward-to-risk opportunity for an upside breakout.
✅ Trade Plan (Long Position)
• Entry: Above $37.05 (wedge breakout confirmation)
• Stop-Loss: Below $35.44 (structure support + wedge base)
🎯 Take Profit Targets:
• TP1: $39.82 (key resistance zone)
• TP2: $43.32 (major recovery level)
• TP3: $44.00+ (extended upside zone)
📈 Risk-Reward Breakdown
• Risk: $37.05 - $35.44 = $1.61
• Reward to TP1: $2.77 → ~1:1.7
• Reward to TP2: $6.27 → ~1:3.9
• Reward to TP3: $6.95 → ~1:4.3
💡 Strong potential with price bouncing near demand + wedge breakout.
🔍 Technical Analysis
✅ Falling Wedge Pattern: Classic bullish reversal setup
✅ Support Zone: Horizontal and diagonal support at $36.55
✅ Volume Check: Monitoring for spike as confirmation
✅ Price Action: Buyer reaction visible near lower trendline
🧠 Strategy & Risk Management
• Wait for a 30-min candle close above $37.05 to confirm breakout
• Move SL to breakeven after hitting TP1 at $39.82
• Take 50% profit at TP1, ride remaining position toward TP2 & TP3
• Protect gains with a trailing stop on higher timeframe
📚 Value for Traders:
This setup is a great example of how falling wedges often signal trend exhaustion. Combined with support and declining volume, it suggests a shift in momentum. Breakouts from such structures can be explosive when confirmed with price and volume.
⚠️ Risk Factors
❌ Weak breakout without volume
❌ Breakdown below $35.44 invalidates the setup
✅ Focus on execution and not prediction
🎯 Final Thoughts
High-probability long opportunity on a quality setup.
Follow the plan. Stick to the levels. Let the chart lead the way. 📈
🔗 #SMCI #StockSetup #ProfittoPath #BreakoutStrategy #ChartAnalysis #TradingView #SmartTrading #BullishReversal #FallingWedge 💰📊
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.