Chart Analysis: Price formed a descending wedge over the past two weeks and recently closed above the wedge resistance with above-average volume. The 50-period EMA has begun to slope upward and the RSI moved out of bearish territory, indicating improving momentum. Key levels: support at $49,200 (recent consolidation low) and resistance / target zone near $56,000 (prior supply zone and measured move).

Strategy Explanation: A practical plan is to wait for a retest of the breakout area around $50,500–$51,000 and look for a bullish confirmation candle or a pullback into confluence with the 50 EMA. Entry: on a confirmed retest or a momentum candle above the retest. Stop-loss: below the recent consolidation low (~$49,000) to keep risk defined. Targets: primary target at $56,000 (measured move) and a secondary extended target near $60,000 if momentum continues. Position size so that the risk per trade is within your risk tolerance (commonly 1–2% of account equity).

Risk Management & Alternate Scenario: If price fails the retest and closes back below the breakout level with rising selling volume, consider the breakout invalidated and avoid taking long trades. In that case look for short opportunities only after a clear breakdown and confirmation below the consolidation low. Always use stops and adjust position size to account for volatility.

Conclusion: The chart shows a compelling breakout with supportive volume and indicator confirmation, but discipline on the retest and proper risk management are essential. Favor trades that align with the breakout and avoid getting caught when price invalidates the move.

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