Trade Analysis of the Chart
1️⃣ Market Context
The chart displays a long trade setup with risk management in place.
The price is currently consolidating near the entry zone after a recent bullish move.
A gray supply zone at the top suggests potential resistance.
The risk/reward ratio looks favorable (green zone = profit target, red zone = stop-loss).
2️⃣ Trade Setup Breakdown
🔹 Entry Zone:
The price is currently at a demand/support level around $2.38 - $2.40.
The market might be testing this support before a potential upside move.
🔹 Stop Loss (SL):
Placed below the support zone, around $2.29.
This protects against invalidation of the bullish setup.
🔹 Take Profit (TP):
Set at $2.70 zone, which aligns with the previous resistance.
🔹 Confluence Factors:
✅ Bullish Structure: Higher highs & higher lows suggest an uptrend continuation.
✅ Support Zone: The price is reacting to a demand level, increasing the likelihood of a bounce.
✅ Fibonacci/Breakout Retest: The price may have retested a key breakout level.
3️⃣ Possible Scenarios
📈 Bullish Case:
If price holds $2.38 - $2.40 and forms bullish candles, it could rally toward $2.70 (profit target).
📉 Bearish Case (Invalidation):
If price breaks below $2.29, this trade setup may fail, leading to further downside.
📌 Conclusion
Current Bias: Bullish (long setup in play)
A strong break above $2.45 - $2.50 could confirm upside momentum.
Monitor lower timeframe reactions for confirmation before price moves.
1️⃣ Market Context
The chart displays a long trade setup with risk management in place.
The price is currently consolidating near the entry zone after a recent bullish move.
A gray supply zone at the top suggests potential resistance.
The risk/reward ratio looks favorable (green zone = profit target, red zone = stop-loss).
2️⃣ Trade Setup Breakdown
🔹 Entry Zone:
The price is currently at a demand/support level around $2.38 - $2.40.
The market might be testing this support before a potential upside move.
🔹 Stop Loss (SL):
Placed below the support zone, around $2.29.
This protects against invalidation of the bullish setup.
🔹 Take Profit (TP):
Set at $2.70 zone, which aligns with the previous resistance.
🔹 Confluence Factors:
✅ Bullish Structure: Higher highs & higher lows suggest an uptrend continuation.
✅ Support Zone: The price is reacting to a demand level, increasing the likelihood of a bounce.
✅ Fibonacci/Breakout Retest: The price may have retested a key breakout level.
3️⃣ Possible Scenarios
📈 Bullish Case:
If price holds $2.38 - $2.40 and forms bullish candles, it could rally toward $2.70 (profit target).
📉 Bearish Case (Invalidation):
If price breaks below $2.29, this trade setup may fail, leading to further downside.
📌 Conclusion
Current Bias: Bullish (long setup in play)
A strong break above $2.45 - $2.50 could confirm upside momentum.
Monitor lower timeframe reactions for confirmation before price moves.
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.