This weekly chart highlights a long-term bullish setup forming after a previous resistance breakout. Following that breakout, the price moved into a prolonged correction and created a falling wedge pattern. Falling wedges are known for signaling potential upside reversals, especially when they occur within a larger uptrend.
Throughout the wedge, the 200 EMA continued to act as strong dynamic support. Each time price approached the 200 EMA, buyers defended the level, showing that long-term investors were still active. This area also aligned with a horizontal support zone, creating a strong confluence where the probability of a reversal increases.
The breakout signal appears when the price finally moves above the upper trendline of the falling wedge. This breakout is supported by a clear surge in volume, indicating strong participation and confirming that the breakout has strength behind it.
The RSI crossing and sustaining above 60 adds another layer of confirmation. On a weekly timeframe, RSI above 60 usually signals the start of a stronger momentum phase where buyers dominate.
Entry point 1 (aggressive):
Entering when price breaks above the falling wedge trendline with improving volume while staying above the 200 EMA and support zone.
Entry point 2 (conservative):
Waiting for a weekly candle to close firmly above the wedge trendline, along with RSI holding above 60 and volume remaining above average.
Risk placement is below the support zone and the 200 EMA, because a breakdown below these levels would weaken the overall setup. Reward is projected based on the height of the wedge and previous major swing highs.
This combination of wedge breakout, strong support confluence, rising volume, and momentum shift provides a complete technical setup for a potential trend continuation.
Throughout the wedge, the 200 EMA continued to act as strong dynamic support. Each time price approached the 200 EMA, buyers defended the level, showing that long-term investors were still active. This area also aligned with a horizontal support zone, creating a strong confluence where the probability of a reversal increases.
The breakout signal appears when the price finally moves above the upper trendline of the falling wedge. This breakout is supported by a clear surge in volume, indicating strong participation and confirming that the breakout has strength behind it.
The RSI crossing and sustaining above 60 adds another layer of confirmation. On a weekly timeframe, RSI above 60 usually signals the start of a stronger momentum phase where buyers dominate.
Entry point 1 (aggressive):
Entering when price breaks above the falling wedge trendline with improving volume while staying above the 200 EMA and support zone.
Entry point 2 (conservative):
Waiting for a weekly candle to close firmly above the wedge trendline, along with RSI holding above 60 and volume remaining above average.
Risk placement is below the support zone and the 200 EMA, because a breakdown below these levels would weaken the overall setup. Reward is projected based on the height of the wedge and previous major swing highs.
This combination of wedge breakout, strong support confluence, rising volume, and momentum shift provides a complete technical setup for a potential trend continuation.
Pernyataan Penyangkalan
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Pernyataan Penyangkalan
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.