Very bullish signals apparent - will it play out this time?
The current situation:
1. Price action has formed an apparent double-bottom pattern on the daily chart with the neckline at about 1.06 USD and the measured target to be about 1.3 USD
Moving averages on the 4, 6, 12HR and daily charts are consolidating at about the 0.9 to 1 USD level, which in my opinion is a good sign as price action is tightening and a big move is expected.
2. On the weekly chart, seller volume is decreasing with lower price action, which can be a signal that seller strength is weakening.
3. There are double bullish divergences apparent on the daily chart. If this plays out, this can be catalyst for a move up.
The bullish case: price action needs to get above some of the major moving averages, especially the daily 21MA, which it has not done since the selloff back on September 3rd
The bearish case: currently, price action has just gotten on top of the 1HR 21 and 50MA, which is a good start. However, if price action falls back below these 2 moving averages again, that is a bad sign.
*Thank you to those who donated, I very much appreciate it.
*Let me know in the comment section if you agree or disagree, would love to hear your ideas too.
*These are purely my speculations and not financial advice. You should always do your own due diligence before trading or investing.
1. Price action has formed an apparent double-bottom pattern on the daily chart with the neckline at about 1.06 USD and the measured target to be about 1.3 USD
Moving averages on the 4, 6, 12HR and daily charts are consolidating at about the 0.9 to 1 USD level, which in my opinion is a good sign as price action is tightening and a big move is expected.
2. On the weekly chart, seller volume is decreasing with lower price action, which can be a signal that seller strength is weakening.
3. There are double bullish divergences apparent on the daily chart. If this plays out, this can be catalyst for a move up.
The bullish case: price action needs to get above some of the major moving averages, especially the daily 21MA, which it has not done since the selloff back on September 3rd
The bearish case: currently, price action has just gotten on top of the 1HR 21 and 50MA, which is a good start. However, if price action falls back below these 2 moving averages again, that is a bad sign.
*Thank you to those who donated, I very much appreciate it.
*Let me know in the comment section if you agree or disagree, would love to hear your ideas too.
*These are purely my speculations and not financial advice. You should always do your own due diligence before trading or investing.
Comment:
I would add that for the bullish case, a solid close above the daily 21MA needs to happen to make a convincing case.