Technical analysis and potential scenario
The currency was in a relatively long downward trend, but it is currently showing a very strong bullish candle (an increase of over 40% in 24 hours), breaking through many previous small peaks. This sudden rise may indicate the potential beginning of a trend reversal or at least a significant bounce.
• Potential scenario: Attempt to test the next resistance level (first sell target) and stabilize above it to confirm the new upward trend.
Trading Plan and Recommendations
• Suggested buying areas (entry):
• Buy on correction (safest): wait for the price to pull back towards the $0.0160 to $0.0170 area after the sudden rise.
• Buy on resistance breakout (if no correction occurs): enter after a strong weekly candle closes above $0.0200.
• Suggested selling areas (taking profits):
• First price target (medium resistance): around $0.0240 (previous peak).
• Strategic price target: around $0.0300 to $0.0350.
• Stop Loss:
• Close of weekly candle below the low from which the strong rise started, approximately at $0.0140.
Strategy and Risk Management
• Strategy: Momentum Trading strategy. Take advantage of the recent rise, but be ready to take profits quickly if signs of weakness appear.
• Tip: this recent rise makes MDT more technically interesting than currencies that have not yet started to rise.