chz longTo more accurately predict the price of Chiles (CHZ) from the chart, you can pay attention to the following factors to determine how far the price may go:
1. Completing the pattern AB=CD:
According to the AB=CD pattern drawn on the chart, the price can move from point C (near the 0.618 Fibonacci level) to point D.
If the pattern is complete, the price gap between points A and B will usually be equal to the distance between C and D. This means, if we measure the amount of movement of AB, the same amount from point C upwards can reach point D.
This point D is likely to be near the $0.080 level or slightly below ($0.078), which could be a potential target for a short-term upside.
2. Resistance level in the range of 0.070 - 0.080 dollars:
Given the red resistance area on the chart, the price is expected to face selling pressure in the $0.070-$0.080 range.
If the trading volume increases while reaching this range, the chances of crossing this resistance and continuing the growth will increase. But if the price meets resistance and volume decreases, it may bounce back.
3. Technical indicators (RSI and MACD):
If the RSI approaches the 70 range in the 4-hour timeframe, it indicates overbought and the price may correct in the resistance range.
A positive divergence in the MACD or a continuation of the bullish trend in this indicator could be further confirmation for continued growth towards $0.080.
Summary and price target:
If the price can break above $0.070 and break the resistance of $0.080 to the upside, there is a possibility of further growth and reaching the level of $0.090. But for the short-term, the $0.080 level could be the main target for the current upside.
If the price faces strong resistance at $0.070 to $0.080 and fails to break this level, there is a possibility of a return and correction to the $0.060 level.
