Current situation
The price movement of IRIS on the daily timeframe was consolidated within the descending channel. However, there has recently been an impulsive rebound from the horizontal support level, which may indicate a change in trend direction.
Explanation of Graph
The chart highlights several key technical aspects:
Downward Channel: IRIS moved in a downward channel, showing a steady downward trend.
Support Level: The price found support at a significant horizontal level, which led to a strong rebound.
Resistance Level: IRIS is now approaching a horizontal resistance zone, which will be a critical area to watch for possible breakouts or rebounds.
Potential Scenarios
Bullish Scenario: If IRIS manages to break through horizontal resistance and stay above it, it could confirm the start of a bullish trend. This scenario will be further strengthened by higher volumes and positive market sentiment.
Bearish Scenario: On the other hand, if the price fails to break through the resistance and begins to decline, it may indicate a resumption of the downtrend. Traders should watch for signs of weakening momentum and volume at resistance.
Trading Strategies
Entry and Exit Points: Traders should consider entering positions after confirmation of a break above resistance. Stop losses can be placed below recent support levels to manage risk.
Monitoring Trends: Monitoring overall market sentiment and using additional technical indicators such as moving averages and RSI can help make informed trading decisions.
Conclusion
The recent bounce off the horizontal support level and approaching the resistance level makes IRIS an interesting asset to watch. Traders should remain vigilant and wait for clear confirmation signals before entering trades, while ensuring proper risk management.
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