Hello friends!
Yesterday surprised with a rally to 1.70. This was a possibility in certain charts, but the signal was not clear nor strong. It is a reminder that TA is far from perfect and that being prepared is vital. This is especially true with TA as changes in fundamentals can overcome even the strongest of signals.
Rather than starting sustained upward momentum, it looks like volatility is in store this week with potential rallies above 1.70 and risk of declines to 1.34 or lower.
ADA was unable to break above 1.70 yesterday, and unable to hold 1.65 or 1.60. Today prices look to move sideways in ranging action between 1.50 and 1.70. Upward momentum later in the day could push prices up to retest 1.70, but there may not be enough momentum to break above and flip 1.70 to support.
The new 2D chart is most concerning showing likely further downward movement, in contrast to other near-term timeframes that suggest a potential reversal. Traders should be prepared for a possible drop back to the 1.34 level in the next 48 hours.
Beyond the 2D, there is hope for a rally to 1.76, but risk in the weekly of another consolidation unless 1.56 can be held.
Intraday/Daily
Summary: Test of 1.70 possible, but prices mostly sideways with downward bias to start
3H - Day looks to start with a small rally from the 1.56 level, but indicators are around level 50. RSI is continuing to decline, but green EMA may bounce off level 50 if the candle closes above 1.56. Price action looks to be sideways around the 1.60 level, but could consolidate.
6H - Green and white EMA have been descending. Again, indicators are converging around level 50. LSMA is flat, but RSI is rising. This mix will likely keep B-bands narrow and prices around the 1.60 level with a downward bias.
12H - All indicators are rising with green EMA lower than white EMA, but both over level 50. This suggests prices are likely to rise, but with B-bands narrowing, prices may not rise higher than the upper white B-band (1.68) in the first half of the day.
1D - Green EMA has crossed above RSI and LSMA, indicating that upward momentum is in control. However, RSI and LSMA are both under level 50 and flat. If green stays above level 50, prices may rise to the basis (1.71) but will need to break resistance at 1.70. Overall, price action is weak and likely to be sideways between 1.51 and 1.71
Multiday (next 1 week)
Summary: Distinct risk of fall to 1.34 in next 48 hours, but mid-week could see a rally above 1.70, which would help to reduce risk of fall to 1.25 later in the week.
2D (new) - This is the key chart of concern. Green EMA has turned down below white EMA and below a falling RSI. This often leads to lower lows, or at least further consolidation. The LSMA near level 50 is keeping B-bands narrow, limiting price ranges. Prices are at risk of falling towards the lower white B-band (1.30) with 1.34 again a likely target.
3D (new) - Green EMA appears to be bouncing and wanting to push prices towards the upper white B-band (1.76) despite the narrow B-bands due to the flat LSMA. However, the white EMA is still very low and RSI is descending near level 50. Consolidation during the next 3 days could change this to keep prices under 1.65 or even cross below the 1.50 support level to prices in the 1.40's.
5D (new) - Like the 3D, in the 5D, the green EMA has bounced above level 50. Despite RSI and LSMA falling, prices are likely to rise to the upper white B-band (1.65). The low white EMA will likely limit upside, however.
1W (new) - The new weekly chart has LSMA and RSI slowly falling. B-bands are likely to narrow, limiting price ranges. White EMA is descending well below level 50 and green EMA is close to level 50 (56) and falling. ADA will need to stay above 1.57 or risk consolidation down to 1.25 late in the week or next candle.
Good luck and good fortune!
PS - reminder that my posts may be limited for the next 1 week.
Yesterday surprised with a rally to 1.70. This was a possibility in certain charts, but the signal was not clear nor strong. It is a reminder that TA is far from perfect and that being prepared is vital. This is especially true with TA as changes in fundamentals can overcome even the strongest of signals.
Rather than starting sustained upward momentum, it looks like volatility is in store this week with potential rallies above 1.70 and risk of declines to 1.34 or lower.
ADA was unable to break above 1.70 yesterday, and unable to hold 1.65 or 1.60. Today prices look to move sideways in ranging action between 1.50 and 1.70. Upward momentum later in the day could push prices up to retest 1.70, but there may not be enough momentum to break above and flip 1.70 to support.
The new 2D chart is most concerning showing likely further downward movement, in contrast to other near-term timeframes that suggest a potential reversal. Traders should be prepared for a possible drop back to the 1.34 level in the next 48 hours.
Beyond the 2D, there is hope for a rally to 1.76, but risk in the weekly of another consolidation unless 1.56 can be held.
Intraday/Daily
Summary: Test of 1.70 possible, but prices mostly sideways with downward bias to start
3H - Day looks to start with a small rally from the 1.56 level, but indicators are around level 50. RSI is continuing to decline, but green EMA may bounce off level 50 if the candle closes above 1.56. Price action looks to be sideways around the 1.60 level, but could consolidate.
6H - Green and white EMA have been descending. Again, indicators are converging around level 50. LSMA is flat, but RSI is rising. This mix will likely keep B-bands narrow and prices around the 1.60 level with a downward bias.
12H - All indicators are rising with green EMA lower than white EMA, but both over level 50. This suggests prices are likely to rise, but with B-bands narrowing, prices may not rise higher than the upper white B-band (1.68) in the first half of the day.
1D - Green EMA has crossed above RSI and LSMA, indicating that upward momentum is in control. However, RSI and LSMA are both under level 50 and flat. If green stays above level 50, prices may rise to the basis (1.71) but will need to break resistance at 1.70. Overall, price action is weak and likely to be sideways between 1.51 and 1.71
Multiday (next 1 week)
Summary: Distinct risk of fall to 1.34 in next 48 hours, but mid-week could see a rally above 1.70, which would help to reduce risk of fall to 1.25 later in the week.
2D (new) - This is the key chart of concern. Green EMA has turned down below white EMA and below a falling RSI. This often leads to lower lows, or at least further consolidation. The LSMA near level 50 is keeping B-bands narrow, limiting price ranges. Prices are at risk of falling towards the lower white B-band (1.30) with 1.34 again a likely target.
3D (new) - Green EMA appears to be bouncing and wanting to push prices towards the upper white B-band (1.76) despite the narrow B-bands due to the flat LSMA. However, the white EMA is still very low and RSI is descending near level 50. Consolidation during the next 3 days could change this to keep prices under 1.65 or even cross below the 1.50 support level to prices in the 1.40's.
5D (new) - Like the 3D, in the 5D, the green EMA has bounced above level 50. Despite RSI and LSMA falling, prices are likely to rise to the upper white B-band (1.65). The low white EMA will likely limit upside, however.
1W (new) - The new weekly chart has LSMA and RSI slowly falling. B-bands are likely to narrow, limiting price ranges. White EMA is descending well below level 50 and green EMA is close to level 50 (56) and falling. ADA will need to stay above 1.57 or risk consolidation down to 1.25 late in the week or next candle.
Good luck and good fortune!
PS - reminder that my posts may be limited for the next 1 week.