This is a 2-hour chart of ARK/USDT from Binance, showing key indicators including volume, RSI, and a 9-period SMA. Let’s break down the chart and identify potential entry and exit points:
Key Observations:
1. Support and Resistance Zones:
Support Zone: Around $0.40 – The price bounced off this level twice, confirming it as support.
Resistance Zone: Around $0.49–$0.50 – Price faced rejection here previously, making it a strong resistance.
2. Moving Average (SMA - red line):
Price is above the 9 SMA, suggesting short-term bullish momentum.
3. RSI (Relative Strength Index):
Current RSI: 64.43, heading towards the overbought zone (above 70).
This indicates bullish momentum, but nearing potential overbought territory.
4. Volume Spike:
Recent increase in volume supports the price surge, which is a bullish confirmation.
Strategy:
Entry Point:
Ideal Entry: $0.42–$0.44
Slight retracement from the current price ($0.4545) into the prior breakout zone.
Look for a bounce near the SMA or support zone with strong volume confirmation.
Stop-Loss:
Below $0.40 (e.g., $0.395) to protect from breakdown risk.
Exit / Take-Profit Levels:
First TP (Take Profit): $0.49–$0.50 – Known resistance zone.
Second TP (if breakout continues): $0.55–$0.57 – Next psychological and historical resistance level.
Trail stop-loss once price hits $0.50 to lock in profits if it keeps rising.
Alternative Approach – Breakout Trade:
If price closes above $0.50 with strong volume and RSI < 80, consider a breakout entry.
Entry: $0.505–$0.51, Stop-Loss: $0.48, TP: $0.55+
Summary:
Would you like a chart image with the entry/exit zones marked?