CAKEUSDT created a double bottom on the weekly support and now the market is testing the 0.5 Fibonacci level.
The buyers are trying to have a breakout from the descending trendline (dynamic resistance)
We can wait for the breakout from the weekly resistance (red one) and apply our rules to open a new long position
The buyers are trying to have a breakout from the descending trendline (dynamic resistance)
We can wait for the breakout from the weekly resistance (red one) and apply our rules to open a new long position
Note
The price is testing the 4h resistance below the weekly resistance.The market did 7.6% after our free call.
What the next?
We need to wait for a breakout of the major resistance.
12.5$ is a weekly resistance and usually is very risky to open a long position below this area.
On the daily timeframe (above) you can see how our support worked (around 10$)
We must recognize the structures in order to avoid the open a long or short position on the key level.
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Disclaimer
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.