Trend Direction: 1D Chart: The higher timeframe (1D chart) shows a consolidation phase after a strong upward move, with price currently trading near the upper part of the range. 1H Chart: The 1H chart indicates that price has recently found support near the $2,490 area and is moving towards a resistance zone around $2,510.
Fractals and Levels: Support Level: The $2,490-$2,495 zone, which aligns with a strong support area and is reinforced by the 1H and 1D fractals. Resistance Level: The $2,510-$2,515 area, which corresponds to a previous resistance zone and is a potential target for a retracement. Fibonacci Levels: The 50% retracement level lies close to $2,505, providing a confluence with the resistance area. Volatility Consideration: The recent price action suggests moderate volatility. Stop-loss and take-profit levels will be adjusted accordingly.
Trade Idea: Entry Price: $2,495 (This is within the support zone and offers a low-risk entry point). Stop Loss: $2,485 (Placed just below the support level to protect against downside risk). Take Profit: $2,510 (This aligns with the resistance zone and is near the 50% Fibonacci retracement level, where high liquidity and potential retracement are expected).
Trailing Stop Loss Adjustment: First Adjustment: If the price reaches $2,500, move the stop loss to break even at $2,495 to eliminate risk. Second Adjustment: When the price reaches $2,505, adjust the stop loss to $2,498 to secure some profits. Final Adjustment: If the price approaches $2,508, move the stop loss to $2,502 to lock in further gains.
Execution: Order Type: Place a limit buy order at $2,495. Target Price: $2,510. Stop Loss: $2,485.
Conclusion: Given the current technical setup, it offers a good opportunity to capture gains within the range-bound movement. However, if market conditions change, it would be better to avoid the trade.