The price action shows a clearly forming wedge, with the upper resistance holding around the $16 area while the lower trendline is steadily rising. This compression (price “coiling”) indicates decreasing volatility, converging moving averages, and fading volume - all classic signs of accumulation before a strong directional move. The volume profile highlights demand clustered near current levels, suggesting buyers are absorbing supply and preparing for a breakout. A bullish resolution becomes increasingly likely as price approaches the apex of the wedge.
The trading idea is to look for a breakout and consolidation above $16 accompanied by an expansion in volume. The projected target is $21, calculated by projecting the wedge’s height from the breakout point. A protective stop can be placed below the lower boundary of the wedge or the most recent swing low (around $13.5 - $14) to manage risk. This setup offers a favorable risk-to-reward profile and aligns with a momentum-driven upside continuation once the compression resolves.
The trading idea is to look for a breakout and consolidation above $16 accompanied by an expansion in volume. The projected target is $21, calculated by projecting the wedge’s height from the breakout point. A protective stop can be placed below the lower boundary of the wedge or the most recent swing low (around $13.5 - $14) to manage risk. This setup offers a favorable risk-to-reward profile and aligns with a momentum-driven upside continuation once the compression resolves.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.