By analyzing the chart and the new low we can see that the price is going to bounce from the 46.00 support level. By drawing an upward line which will be a support line for further upwards movement. RSI is going to confirm price reversal. We can use a breakout signal for confirmation of the upward movement and entry in the market.
Place pending orders for buy at 47.50 level. Stop orders must be below 46.00 support level. Profit target is near 50.00 resistance level. This is a short term and risky long trade. But it’s an additional opportunity to join the upward movement. If the price breaks the uptrend line, it will be a signal of downward movement.
Be ready to close this long trade and wait for new buy signals from lower support levels and the main trend line. If you don’t use leverage, recommended trading volume for this trade is up to 5% from your deposit.
Profit Targets: 49.85
Original Author: Dmitriy Lavrov