#AXSUSTD $AXS Market Structure
· Trend: The price is in a clear short-term downtrend. It has broken down from a previous consolidation/ranging area (approximately between 1.80 and 2.00) and is making lower lows.
· Moving Averages: The price (1.695) is trading significantly below the marked "Take Profit" levels (1.75, 1.78, 1.81), which likely align with key moving averages (like the 20-period or 50-period EMA) acting as dynamic resistance. This confirms the bearish momentum.
2. Key Price Levels
· Resistance: The cluster of Take Profit orders defines immediate resistance zones:
· Primary Resistance: 1.75 - 1.81. A move back into this zone would be needed to signal a potential trend pause or reversal.
· Support:
· Immediate Support/Stop Loss: The 1.68 level is critical. It is the defined "Stop Loss Price" for the trade. A decisive break below this could trigger accelerated selling.
· Lower Support: The chart shows historical support near 1.50 and 1.30.
3. Volume Analysis
· The volume profile on the lower panel shows significant selling volume (red bars) on the down candles, confirming the bearish move. The high volume spike on the latest drop validates the breakdown.
· The relatively low volume on up-moves suggests lack of strong buying interest to counter the downtrend.
4. Bullish Divergence (Potential Warning Sign)
· Important Observation: The text mentions "Bull Bull" next to the RSI-like oscillator at the bottom (values 46.25 and 40.00). This strongly suggests the presence of a bullish RSI divergence.
· Interpretation: While the price made a lower low (from ~1.712 to 1.695), the oscillator made a higher low (from 40.00 to 46.25). This is a classic momentum divergence, indicating that selling pressure may be weakening even as price falls. It is a potential early signal for a trend pause or reversal, but it is not a buy signal by itself.
. Trade Setup Analysis
The chart depicts an active short trade or a sell limit order setup:
· Entry: 1.712 (Short)
· Stop Loss: 1.68
· Take Profit Targets: 1.75 (TP1), 1.78 (TP2), 1.81 (TP3)