Hello traders 🐺 .

in this idea I want to talk about the pancake swap token (CAKE) , and in my opinion this is a very good buy opportunity for the CAKE holders , also if you looking for the staking the CAKE token , this could be a great opportunity for you , because currently CAKE is undervalue and if this coin trend reverse from bearish to the bullish , current price could be a very great buy opportunity .

Let’s talk about the CAKE possible bottom :

in the chart above you can see in the overall view , CAKE was formed a very big M pattern or in the other word double top pattern , and after breaking the neck line which is also the weekly structure (red box) , price was dropped about 45% and reach the M pattern target which is shown by the 0.618 Fibonacci level .

in the other side we have a very clear descending channel which is currently CAKE is trading inside it and in my opinion you can make fantastic gain after break the channel .

RSI :

In the RSI we have a bullish divergence , which in my opinion could be the first sign of the trend reversal , and if price success to break the channel we could say that this is the confirmation of this bullish divergence .

TSI :

TSI is about to break above the zero line and if we put all of this information together , we can conclude that trend reversal is very imminent for the CAKE but always wait for the last confirmation and trade safely , but

how we can trade it ?

As you can see , CAKE is near to the daily resistance structure and the EMA Ribbon resistance lines , I expect something like a above picture for the CAKE and I like to wait for the break out from the daily resistance and also break above the EMA Ribbon and retest them as a new support for opening a long position on CAKE .

But always remember to trade based on your trading strategy and this idea is not a financial advice