#GoldPricesSoar
This analysis outlines a bearish trading setup on a coin that’s struggling to break past a major resistance area at $4.30–$4.35. Key points include:
Resistance and Support Dynamics:
The asset has faced repeated rejections at the $4.30–$4.35 zone, a clear supply area where seller pressure has outweighed buyer strength.
On the 15-minute chart, a break below the critical $4.18 support level indicates that this support may now flip into resistance, reinforcing the bearish sentiment.
Trade Setup:
Entry Point: A short position is suggested, ideally entering between $4.15 and $4.18.
Targets: The first target is around the $4.09 demand zone, with a possibility of extending the profit target to approximately $3.98 if the bearish momentum continues.
Stop Loss: To protect against a potential bullish reversal, a stop loss should be placed above $4.23.
Rationale:
Once support breaks, it often turns into resistance—a classic technical analysis principle that can offer traders an edge.
Waiting for a weak retest of the $4.18 level before entering the trade can help ensure that the breakdown is valid and that the momentum is indeed shifting in favor of the bears.
In summary, this setup capitalizes on the recent technical breakdown, providing a clear plan for a short trade while emphasizing disciplined risk management. Let me know if you’d like to discuss further details or additional analysis!
