chart analysis @lunyoner
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Chart and Structure:
A classic 'bull flag' formation has formed on the weekly time frame of the chart. Following the main upward trend, a horizontal negative structure is displayed within a retracement channel limited by two parallel lines. When this formation breaks, aggressive upward continuations are usually observed.
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Formation and Targets:
• Formation type: Bull Flag
• Potential breakout target reflects the height of the rise before the flag:
• Starting area: 0.52
• Formation exit target: 3.38 (1x)
• Medium-term fib targets:
• 5.15 (1.618)
• 7.42 (2.414)
• 10.86 (3.618) → maximum expansion target
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Support and Resistance Levels:
• Main Supports:
• 1.95 (fib 0.5)
• 1.62 (fib 0.382)
• 1.20 (fib 0.236)
• Main Resistances:
• 3.38 (previous peak)
• Selling areas between 5.15 – 7.42
• 10.86 (parabolic area – profit realization level)
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Indicators:
• Volume: A classic drop in volume is observed during the period of compression before the upward trend. This is a potential signal of readiness for a breakout.
• RSI (likely 1W): Neutral band but curved upwards, indicating a strengthening trend.
• MAs: The price is currently above the EMAs; trend direction is positive.
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Trend Direction:
• Main trend is upward.
• After the breakout of the descending channel, it can start a new upward trend by making the previously tested area support.
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4H – 1D – 1W Volume Commentary:
• 4H: Accumulating strength within low volatility
• 1D: Volume has started to form a base
• 1W: The main breakout signal will be taken here
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Road Map:
1. 2.20 – 2.40: The breakout threshold of the formation
2. 3.38: First target, psychological resistance
3. 5.15: Area where the rise will gain momentum
4. 7.42 – 10.86: Maximum potential area with ongoing hype and momentum
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Strategy Suggestion:
• Buying areas:
• 1.95 (as long as it holds above support)
• A daily close above 2.15 would confirm a buy
• Stop-loss area:
• If it closes below 1.60 weekly, the breakout will fail
• Profit realization levels:
• %30 → 3.38
• %30 → 5.15
• %20 → 7.42
• %20 → towards the 10.86 area
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Conclusion:
This chart is a clear example of the classic textbook 'bull flag' formation. We see that a structure that has been consolidating for a long time has now reached the breakout area. All that is needed for a strong trend start is volume support. With volume, this structure has the potential for 2x, 3x, and above multipliers.
Patience, discipline, and step-by-step profit taking carry high potential.