On the daily chart price bounced from MA20. We got the confirmation of price reversal and a signal of possible upward movement. Based on the 4H time frame we have to find entry levels for buying. We can see the downtrend line which is a barrier for upward movement. It will be logical to open long trades if the market breaks this downtrend line. We can place buy pending orders at 48.10 with stop below 39.90 level. Profit target should be at 54.00 level or you can leave a part of volume for long term trading. Don't forget that the breakout signal must be confirmed by indicators. MACD histogram will have to confirm upward movement. ADX line of DMI indicator will have to move upward to 20 level and higher. Other variant for buying can be based on a reversal signal from 35.00-32.00 support zone. If the market breaks 39.90 level, probably we'll see downward movement to this support zone. It will be a new trading opportunity!
Thanks, as I understand from your analysis, at this point the trend can go both ways. Could you explain how RSI confirms price reversal on your chart? I see the tops on the RSI are still lower compared to July 4th (downwards line).
DLavrov
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@Inct73, RSI confirms price reversal from the downtrend line.