Short term direction: Long
Reasons:
Starting our analysis on the daily chart, we can see that the price has made a bearish movement, that has stopped as the price hit the previous support line. It may make a smaller bearish move before the bullish bounce as the price did not hit the support line completely but has reversed before that. Stop losses beneath the indicated purple line.
Continuing our analysis on the four-hour chart, we can see that a bearish breakout out of the indicated pennant formation has formed some time ago. Since then the price has made a reversal of direction as it has bounced off the indicated purple support line, that we have already observed on the daily chart. We may see another smaller bearish move before the price continues to go higher again, so we are putting stop losses beneath the lowest indicated support line.
Looking at the price movement on the hourly chart, we see that the breakout out of the pennant formation has indeed stopped. As on the other timeframes, we are also opened to the possibility that another bearish move could have formed before the bullish move. Stop losses beneath the inidc ated support line, and taking profits at the resistance.
We wish you good luck with your trading!
Reasons:
Starting our analysis on the daily chart, we can see that the price has made a bearish movement, that has stopped as the price hit the previous support line. It may make a smaller bearish move before the bullish bounce as the price did not hit the support line completely but has reversed before that. Stop losses beneath the indicated purple line.
Continuing our analysis on the four-hour chart, we can see that a bearish breakout out of the indicated pennant formation has formed some time ago. Since then the price has made a reversal of direction as it has bounced off the indicated purple support line, that we have already observed on the daily chart. We may see another smaller bearish move before the price continues to go higher again, so we are putting stop losses beneath the lowest indicated support line.
Looking at the price movement on the hourly chart, we see that the breakout out of the pennant formation has indeed stopped. As on the other timeframes, we are also opened to the possibility that another bearish move could have formed before the bullish move. Stop losses beneath the inidc ated support line, and taking profits at the resistance.
We wish you good luck with your trading!