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Key Rejection Zone Approaching – Bearish Setup in Play

1 199
Chart Summary:

Asset: Unspecified (USD-based)

Timeframe: Short-term (likely 1H or 4H)

Indicators:

EMA 50 (red): 3,245.772

EMA 200 (blue): 3,223.635


Key Zones:

Resistance Zone (Red box): ~3,310–3,360

Target/Support Zone (Red box): ~3,110–3,160

Mid Support Zone (Blue box): ~3,200–3,230


Trendline: Downward sloping resistance connecting major highs



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Technical Breakdown:

Trend Analysis:

Primary Trend: Bearish ⬇️

Confirmed by the downtrend line (black) which has been respected multiple times (3 clear touches).


Current Price: 3,290.090

Price is approaching a key confluence zone: resistance area + trendline.

This area has previously acted as strong supply.



Moving Averages:

EMA 50 > EMA 200: Minor bullish signal (Golden Cross), but price action is still below major resistance.

However, this cross may be a false signal if price gets rejected here.



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Price Action:

Current Move: Strong bullish push toward resistance after rebounding from the target zone ✅

The resistance zone and trendline are likely to act as a rejection point unless broken decisively.



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Bearish Scenario (High Probability):

If price fails to break above the resistance zone:

Expect a rejection and move back toward:

Blue mid-support: ~3,220

Target zone: ~3,130 (major demand area)


Confirmation: Bearish candlestick pattern or strong wick rejections near resistance.



🔵 Entry Idea: Short near 3,310–3,350
🎯 Target: 3,130 zone
✋ Stop-Loss: Above 3,360 (above trendline + resistance)


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Bullish Scenario (Less Likely):

If price breaks above the resistance zone with strong volume:

Could signal trend reversal

Next target levels: ~3,400+




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Conclusion:

Bias: Bearish near resistance zone

Key Level to Watch: 3,310–3,360 (critical for direction)

Trading Approach: Wait for confirmation, don't preemptively short without rejection signals.

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