#Dot trade setup
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🔍 Technical Overview (1D Timeframe):
🔸 Current Price:
$3.778 (Down -1.15%)
🔸 Key Levels:
• Resistance Levels:
• $4.32 (Recent Lower High)
• $5.39 (Swing High)
• Support Levels:
• $3.61 (24h Low)
• $3.01 (Major Swing Low)
🔸 Moving Averages (MA):
• MA(50): $3.767 (Price is just above – short-term bullish bias)
• MA(200): $4.423 (Price is well below – long-term bearish)
🔸 Relative Strength Index (RSI):
• RSI(6): 28.48 (Oversold)
• RSI(12): 40.87
• RSI(24): 46.57
→ Momentum is bearish but nearing oversold region – potential for bounce
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📊 Trade Setup Scenarios:
✅ Bullish Setup (Short-Term Rebound Play):
• Entry: $3.75 – $3.78 zone
• Target 1: $4.10 (resistance near recent highs)
• Target 2: $4.32 (previous rejection level)
• Stop Loss: $3.60 (just below swing low)
Risk/Reward: ~1:2 (good if you’re catching the bounce)
Reasoning: RSI(6) is oversold, and price is sitting just above MA(50). If it holds, a short-term rebound is possible.
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🔻 Bearish Setup (Breakdown Play):
• Entry: Below $3.60 (confirmation of breakdown)
• Target 1: $3.30
• Target 2: $3.01 (major swing low)
• Stop Loss: $3.78 (back inside current range)
Risk/Reward: ~1:2.5+
Reasoning: Breakdown below $3.60 would confirm continuation of bearish trend. MA(200) overhead is strong resistance.
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📉 Trend Outlook:
• Long-term Trend: Bearish (below MA(200))
• Short-term Trend: Sideways to weak bullish (hovering around MA(50))
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📌 Recommendation:
• Intraday to Swing Traders: Watch for price action near $3.75–3.78 and $3.60. Avoid trading inside the range unless breakout/breakdown confirmed.
• Scalp Traders: Look for bounce setups on lower timeframes (15m, 1h) near $3.75 with tight SL.
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