Chess Technical Analysis Shows Two Scenarios ?
Scenario 1:-
Price of the asset is expected to correct and reach a strong buying area between 0.1600-0.1700 levels. This means that the price has been oversold and needs to cool off before continuing its upward journey. Once the correction is completed, the price might take support from 0.1600-0.1700 levels and move till 0.2300-0.2400 levels (trendline resistance).
Scenario 2 :-
There are two possibilities.
A. The first possibility is that the price might break below the strong buying area between 0.1600-0.1700 levels and continue its downward journey. This indicates that the bears have taken control of the market and the price is likely to go down further.
B. The second possibility is a fake breakdown, where the price breaks below the strong buying area but quickly returns back above it. This is a trap for short sellers who might sell in panic, providing liquidity for buyers to push the price up again.
Summary
Both scenarios involve the price of the asset correcting from its oversold state. It is important for traders to analyze the market carefully and use technical analysis tools to make informed trading decisions.
#plan your trade , trade your plan !
Price of the asset is expected to correct and reach a strong buying area between 0.1600-0.1700 levels. This means that the price has been oversold and needs to cool off before continuing its upward journey. Once the correction is completed, the price might take support from 0.1600-0.1700 levels and move till 0.2300-0.2400 levels (trendline resistance).
Scenario 2 :-
There are two possibilities.
A. The first possibility is that the price might break below the strong buying area between 0.1600-0.1700 levels and continue its downward journey. This indicates that the bears have taken control of the market and the price is likely to go down further.
B. The second possibility is a fake breakdown, where the price breaks below the strong buying area but quickly returns back above it. This is a trap for short sellers who might sell in panic, providing liquidity for buyers to push the price up again.
Summary
Both scenarios involve the price of the asset correcting from its oversold state. It is important for traders to analyze the market carefully and use technical analysis tools to make informed trading decisions.
#plan your trade , trade your plan !