Alvotech breaking out towards 16-18 levelAfter price broke out of the bearish line before and after making a hammer, it started a retracement.
My assumption is it will eventually retest the Weekly EMA 10 levels, which will serve as support.
Going long there (with the SL below the EMA 10) is a conservative way to enter the bullish trend.
We have measure the long wick/shadow of hammer to calculate the target price (12.57-9.15=3.42).
TP1 = 16 (3.42+12.6) handle and TP2 = 18 (old supply zone).
In terms of trade management, when TP1 is hit I would take profit on half of my position and roll my stop loss to breakeven, enjoying a risk free trade towards TP2.
There are 5.5 pips to be made (if this pair follows the script) and the trade has a reward – risk ratio of 9!
