Key Rejection Zone Approaching – Bearish Setup in PlayChart Summary:
Asset: Unspecified (USD-based)
Timeframe: Short-term (likely 1H or 4H)
Indicators:
EMA 50 (red): 3,245.772
EMA 200 (blue): 3,223.635
Key Zones:
Resistance Zone (Red box): ~3,310–3,360
Target/Support Zone (Red box): ~3,110–3,160
Mid Support Zone (Blue box): ~3,200–3,230
Trendline: Downward sloping resistance connecting major highs
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Technical Breakdown:
Trend Analysis:
Primary Trend: Bearish ⬇️
Confirmed by the downtrend line (black) which has been respected multiple times (3 clear touches).
Current Price: 3,290.090
Price is approaching a key confluence zone: resistance area + trendline.
This area has previously acted as strong supply.
Moving Averages:
EMA 50 > EMA 200: Minor bullish signal (Golden Cross), but price action is still below major resistance.
However, this cross may be a false signal if price gets rejected here.
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Price Action:
Current Move: Strong bullish push toward resistance after rebounding from the target zone ✅
The resistance zone and trendline are likely to act as a rejection point unless broken decisively.
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Bearish Scenario (High Probability):
If price fails to break above the resistance zone:
Expect a rejection and move back toward:
Blue mid-support: ~3,220
Target zone: ~3,130 (major demand area)
Confirmation: Bearish candlestick pattern or strong wick rejections near resistance.
🔵 Entry Idea: Short near 3,310–3,350
🎯 Target: 3,130 zone
✋ Stop-Loss: Above 3,360 (above trendline + resistance)
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Bullish Scenario (Less Likely):
If price breaks above the resistance zone with strong volume:
Could signal trend reversal
Next target levels: ~3,400+
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Conclusion:
Bias: Bearish near resistance zone
Key Level to Watch: 3,310–3,360 (critical for direction)
Trading Approach: Wait for confirmation, don't preemptively short without rejection signals.
