Hereโs a breakdown of the key elements:
1. Resistance Zone (Yellow Box at Top):
Price has previously reversed from this area, suggesting strong selling pressure.
This is marked as a supply or resistance zone.
2. Current Price Action:
Price recently spiked up into the resistance area and is now forming lower highs and lower lows (indicated by the black zigzag line), suggesting bearish momentum.
3. Cloud Indicator (Ichimoku Cloud):
Price is currently above the cloud, but there's a projection for it to dip into the cloud and then break downward, aligning with the short setup.
4. First Target (Red Line at ~95,139):
This is a support level or minor demand zone where the price may react.
5. Second Target (Yellow Box at Bottom ~93,200):
A more significant support level, indicating the ultimate profit-taking area for this short setup.
6. Blue Arrow:
Visual indication of the anticipated bearish move
Interpretation:
The chart suggests entering a short position near current levels (~96,480) with:
First take-profit around 95,139
Second take-profit around 93,200
A stop-loss would likely be placed above the resistance zone (~98,000)