M1 Ltd – Daily timeframe
*Entry Price: 1.830 Stop loss : 1.700 Take profit : 1.965
Current Sentiment: Bullish
Support 1: 1.760 Resistance 1: 1.825
Support 2: 1.705 Resistance 2: 1.910
Price has been falling sharply since May 2017 after the 2.29 resistance area kept a lid on the price. After hitting a recent low of 1.705 in August, the price made a marginal recovery while the 20 and 60 day moving average continued to weight down on price, suggesting the downtrend is still in control.
However, the more recent consolidation between the 1.825 range high and 1.760 range low suggests a strengthening bullish momentum. There were multiple bullish rejections off the 1.760 range low since 23/08/17 signals a strong base here at 1.760. In addition, within the consolidation zone, there were more forceful bullish bars highlighted by the up arrows signals a buildup in strength. The current increasing volume bullish break above the 1.800 immediate range high on 09/11/17 is another sign that the bulls are winning the fight.
As long as a convincing bullish breakout above the 1.825 range high appears, there is a high likelihood of a reversal to the upside with 1.705 being the low base. Expect price to retest the 1.910 resistance area next followed by 1.965 after the bullish breakout occurs.
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