Chart Analysis: Symmetrical Triangle with Support and Resistance

Updated 18 December, 2024 / Time: 03:58

1. Chart Pattern Overview:
   • The chart depicts a symmetrical triangle pattern with clear higher lows (upward trendline) and a strong horizontal resistance zone.
   • The green upward arrows mark the points where the price has bounced off the trendline support.
   • The red arrows indicate repeated failures at the resistance zone, forming a supply zone.

1. Support and Resistance:
   • Support: The price is respecting the ascending trendline, forming consistent higher lows.
   • Resistance: The price has been repeatedly rejected near the red supply zone (horizontal resistance).

1. Current Market Action:
   • The most recent green candle indicates a bounce from the trendline support, suggesting buying strength.
   • A potential upward movement toward the resistance zone is marked by the green dashed arrows.

1. Key Observations:
   • The chart shows signs of accumulation, with buyers stepping in near the trendline.
   • If the price breaks above the resistance zone, it could trigger a bullish breakout with significant upside potential.
   • Conversely, if the trendline support breaks, the price may witness a bearish move.

This analysis highlights a strong upward bounce and the possibility of a bullish breakout if the resistance zone is breached. Traders should monitor the key levels for confirmation.