Technical analysis by sunnytrader07 about Symbol PYTH: Buy recommendation (5/21/2024)

PYTHUSDT is exhibiting a bullish divergence on the 4-hour timeframe, suggesting a potential reversal in the prevailing downtrend. Furthermore, the price has successfully breached its lower high level and established a higher high, indicating a strengthening bullish momentum. Based on this analysis, a trading strategy can be outlined as follows: Entry: Consider entering a long position at the current market price of $0.4700 Stop Loss (SL): Place a stop loss order at $0.3540 to manage risk and mitigate potential losses Take Profit (TP): Set take-profit levels to achieve a 1:1, 1:2 risk-reward ratio: TP1: Set the first take-profit level at $0.5860 TP2: Aim for the second take-profit level at $0.7090 This trading strategy anticipates a bullish reversal based on the identified bullish divergence and the breakout above the lower high level.