Current Price Action**: The price is sitting near the **0.5 Fibonacci level (7.735)**, a commonly used support/resistance level. The annotation suggests this is a buying opportunity due to the convergence of technical factors.
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### **2. Key Support and Resistance Zones** Support Zones**: - **6.754–6.488**: The golden pocket is a high-probability reversal zone. 5.358: Corresponds to the **0.786 Fibonacci level**, adding further support. - **3.580**: Major historical low and 100% retracement.
Resistance Zones**: 9.928: **0.236 Fibonacci level**, acting as the first key resistance. 11.889: Recent swing high and ultimate target.
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### **3. Buying Opportunity** The annotation on the chart identifies the **0.5 Fibonacci level (7.735)** as an optimal buying zone. The reasoning is likely due to: Confluence with the support zone. Fibonacci retracement aligning with the trend.
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### **4. Potential Price Scenarios** Bullish Scenario**: If the price holds above **7.735** and confirms support, it could target **9.928** (0.236 Fibonacci level). A breakout above **9.928** opens the path to the recent high of **11.889**.
Bearish Scenario**: A breakdown below **6.754–6.488** (golden pocket) could send the price toward **5.358** or lower.
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### **5. Strategy** - **Entry**: Enter around the **7.735** level. - **Stop-Loss**: - Below **6.488** (below the golden pocket). - **Targets**: Target 1: **9.928**. Target 2: **11.889**.
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### **6. Indicators to Confirm Trade** RSI: Check if it shows oversold conditions near the current level. Volume: Increasing volume near **7.735** confirms buying interest. MACD: Look for bullish crossovers to confirm momentum.
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