Long Opportunity on TWT - Technical Analysis Breakdown
Hello traders! 👋 Let's dive into a technical analysis of Trust Wallet Token (TWT).
Chart Analysis:
TWT 14 October 2023, reclaimed a crucial 1-week level at $1.0342 (green line). This led to an impressive impulsive move, reaching highs of $1.70 to $1.80, creating liquidity and notable inefficiency in the market.
Despite a subsequent retracement, the price action has been respecting a yellow diagonal uptrend line. A small bull flag pattern has formed, with the price breaking above. Currently, we are trading above the previous resistance zone marked by the violet box.
Trade Opportunity:
I believe it's a favorable moment to consider a long position, given the bullish indications. The risk-reward ratio for this trade is 1:5, indicating a potentially lucrative setup.
However, it's crucial to remain vigilant and consider switching to a short position if a daily candle closes below the yellow diagonal, with confirmation below the trendline.
Conclusion:
In summary, TWT presents a compelling long opportunity, but traders should closely monitor the yellow diagonal trendline for potential shifts in market sentiment. As always, remember to manage risk appropriately and stay updated with real-time market developments.
Disclaimer: This is not financial advice. Always conduct your research and consider your risk tolerance before making trading decisions.
