Technical analysis by Achilly about Symbol CHZ: Buy recommendation (12/13/2024)

CHZ is currently forming a descending wedge pattern, which is typically a bullish reversal pattern when formed in a downtrend. The price has been making lower highs and lower lows within the wedge, but the convergence of the trendlines suggests a potential breakout is approaching.Key Technical Observations:The primary trend shows a strong upward movement followed by a corrective phase within the descending wedge. The upper trendline connects multiple lower highs, while the lower trendline connects the lower lows, creating a clear convergence. The pattern started forming after reaching a local high, and the price has been consolidating with decreasing volatility, which often precedes a significant move.Price Targets:Given the height of the wedge and volatility principles:1. Initial target: 0.14000 (previous resistance level)2. Secondary target: 0.16000 (based on previous swing high)3. Extended target: 0.18996 (projection based on the full previous move)Trading Setup:- Entry Conditions: Wait for a decisive breakout above the upper trendline (currently around 0.12000) with increased volume- Initial Stop Loss: Place below the most recent swing low at 0.10500- Take Profit Levels: 1. First TP at 0.14000 2. Second TP at 0.16000 3. Final TP at 0.18996Risk Management:- Stop Loss Placement: Below the wedge's lower trendline to maintain pattern validity- Position Scaling: Consider entering 50% position on initial breakout, add 25% on first retest of breakout level, final 25% after confirmation- Market Conditions to Watch: Overall crypto market sentiment, Bitcoin's price action, and trading volumeAdditional Considerations:The decreasing volume within the wedge supports the pattern's validity. A sudden increase in volume during breakout would provide additional confirmation of the setup.Trade Validation:- Bullish case: Break above 0.12000 with strong volume- Invalidation: Break below the lower trendline or 0.10000 support level- Pattern timing: Expect resolution within the next 24-48 hours based on wedge convergence