Technical analysis by rudcharts about Symbol BONK: Buy recommendation (12/6/2024)

BONKUSD Daily Chart Analysis•Background: BONKUSD was introduced on Coinbase in December 2023. From its launch through November 2024, the price consolidated within a symmetrical triangle pattern.•Breakout: On November 10th, 2024, the price broke out of the triangle with massive volume, soaring as high as +140% from the breakout point.•Current Setup: Following the breakout, the price has pulled back and formed a bull flag pattern. However, confirmation of the breakout from the bull flag has not yet occurred.•Momentum: The MACD remains in bullish territory but is currently below its signal line. The histogram is contracting, signaling a potential crossover of the MACD above its signal. Such momentum could drive the price to break out of the bull flag, providing confirmation.Trade Rationale:Despite the lack of breakout confirmation, entering long prematurely is justified by the strong bullish context and potential for momentum to shift. The stop-loss is placed with extra room to account for any pullbacks within the flag before a breakout occurs.Trade Setup (Long):•Entry: 0.00004314•Stop Loss: 0.00003305 (-23.39%)•Target #1: 0.00008468 (+96.29%, 4.12 RR ratio)•Target #2: 0.00012728 (+194.29%, 8.24 RR ratio)This setup aligns with the post-breakout consolidation and the potential for the MACD to trigger a new bullish move.