A subscriber asked me to analyze XTZUSD, here is what I’ve read from the chart.
We have a nice triangle on the background. Previous price action reveals levels of support (1.15) and resistance (1.4). Fake Penetrations (1 and 2) confirm the validity of these levels.
3/ The First Bullish Impulse. Here we got a Demand-Bar breakout. Could it be expected or predicted? Not many odds from point of view. Market was balanced and non-active before breakout, and the better tactic then is to find fast-time frame opportunities to join upward-breakout.
4/ The minor balancing triangle around 1.4-1.45 (demand temporary meet supply in quantity and quality) provides such opportunities around its low border.
5/ The Second Bullish Impulse. Bullish Breakout above the minor triangle.
6/ The third Bullish Impulse.
After three bullish impulses in a row, up-wave power should exhaust now. Add the Completed Target Level 1.65. So, we have to expect a pullback in 1-3 nearest days.
Bulls can resume their pace, of course. In this case, they need some minor Shakeout (Artificial Panic, SLKT) in order to knock-out existing longs and 1.65 clear resistance.
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