$SOXL

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The market structure has decisively shifted bullish, transitioning from a lower consolidation phase into a strong impulsive uptrend, evidenced by the price breaking above the middle Bollinger Band and establishing higher highs.

The 1-hour chart shows a series of strong green candles that have pushed the price from a local low of 45.46 up to a peak of 63.27, currently trading at 62.57; the price is riding the upper Bollinger Band (UB: 64.03), indicating strong buying pressure but also suggesting it is entering overbought territory as it extends far above the moving averages (MA5/MA10).

Trading Plan: I will look for a long continuation setup on a minor pullback, targeting a retest of the recent high of 63.27 and potentially the upper band at 64.03, while placing a tight stop-loss below the middle Bollinger Band support (approx. 57.32) to protect against a reversal.

I predict that while the momentum is strong, the price may briefly consolidate or retrace to the 60-61 zone to cool off the RSI before attempting another leg up, as the current vertical move is unsustainable without a breather.

What trade plan I follow and why

I am following a trend-following momentum strategy because the MACD is positive (MACD: 0.55) and the moving averages are fanning out bullishly, but I am waiting for a confirmed entry rather than chasing the top.

When I start my trade

I will start my trade when a 1-hour candle closes with a bullish reversal pattern (like a hammer or engulfing) after a brief pullback touches the 5-period moving average, confirming that buyers are still defending the trend.

Candlestick Pattern: The recent price action features a "Three White Soldiers" style rally—a series of consecutive long-bodied green candles—which is a strong bullish continuation pattern indicating aggressive buying, though the current candle shows a slight upper wick suggesting some selling pressure at the 63.27 resistance.

The trend is strongly bullish, but the asset is overextended in the short term; therefore, the best play is to wait for a pullback to support levels (around 60-61) to enter long, avoiding FOMO at the current peak.