Symmetrical Triangle (coiling) in playI believe this is a consolidation phase before the continuation of the current trend that is upwards, beginning on 3 August 2023 when the price bottomed at .051. marked in the green rectangle below.
Since price peaked on 28 August 2023 for an intraday high of .125 we've seen a total of four reversals of price action, all within two converging trend lines. This is easier to appreciate when you look at the chart by Line and not Candlestick - which is linked below. But the key on the Candlestick is we haven't seen a daily close outside the two trend lines.
Taking a look at RSI, we seem to have hidden bullish divergence tracing the swing low from 5 September 2023 to 6 October 2023 with price action making a higher-low however RSI is creating a higher-low.
OBV is creating a higher-low during the same time-period outlined above re. RSI.
Couple of key points to look out for is Volume needs to confirm the break to the upside of the triangle. You can see since being within the triangle, volume has diminished progressively with higher volume days coming on the bounces we've made off the lower trend line - a key point I'm considering given the overall uptrend mentioned before. Should we break out to the upside, I'm anticipating much higher volume than we've seen for some time and won't be surprised if we test the broken resistance as support.
Take profit will be .135-.140 which is measured by measuring the height of the vertical line at the widest part of the triangle (the base) - '1 and 2' shown below and measure that distance from the breakout point. Alternatively, you can also draw a trend line from the top of point 1 below parallel to the lower trend line.
