Technical analysis by ImmortalEmerson about Symbol ENJ: Buy recommendation (12/12/2024)

Overview:ENJ is currently trading within a well-defined descending channel (yellow trendlines), reflecting a long-term downtrend since its all-time high. This channel offers key insights into historical price action and potential future movements. After touching the bottom boundary multiple times, ENJ is showing signs of momentum for a potential breakout.Key Levels and Observations:1.Descending Channel:•Price remains within the channel, bouncing between resistance (top) and support (bottom).•A breakout above the upper boundary would confirm a potential trend reversal.2.Support and Resistance:•Support Levels: $0.22 (bottom of the channel) and $0.12 (critical historical low).•Resistance Levels: $0.34 (channel resistance) and $3.42 (major breakout target).3.Volume Profile Analysis:•Significant volume buildup within the $0.22–$0.34 range suggests strong liquidity in this area, acting as a base for the next move.•A breakout could target higher-volume nodes at $1.30, $3.42, and beyond.4.RSI Analysis:•RSI is recovering from oversold territory, currently sitting at 38.69, signaling growing bullish momentum but still with room for upside.5.Projection:•A confirmed breakout above $0.34 targets $3.42, which aligns with historical resistance and key volume levels.•If momentum continues, higher targets could be achieved in the long term.Trade Setup (Potential Long Idea):•Entry: Consider entering after a confirmed breakout above $0.34 with strong volume.•Stop-Loss: Set below the recent swing low at $0.22 to limit downside risk.•Take-Profit Levels:•TP1: $1.30 (interim resistance).•TP2: $3.42 (major breakout target).•TP3: $4.79 (longer-term resistance).Risk Factors:•A failure to break the $0.34 resistance could lead to further consolidation within the channel.•Watch for rejection at key levels and decreasing volume during attempted breakouts.Conclusion:ENJ presents an exciting long-term opportunity with its structured channel and volume profile suggesting accumulation. A breakout above the key $0.34 resistance could trigger a significant trend reversal, offering targets up to $3.42 and beyond. Keep an eye on volume and RSI for confirmation of bullish momentum.What are your thoughts on this setup? Let’s discuss in the comments!