HI friends! Congratulations to my Twitter voters, who voted NANO, and came in strong with the second place finish! Let's get right to it! Looking at the four hour chart for NANO, we can see that support was recently found on the 20 EMA (in blue.) There isn't really a lot of data to analyze yet, but we can see that the current price action appears to be creating a bowl-shaped formation. The dashed blue trendline would be the breakout level for the bowl, and you can see that it ties in nicely with support that existed slightly after the first candle. Since the 20 EMA was supportive, we can use it for a barometer on the formation of the bowl. If the 20 falls, the 50 EMA is right behind it. If that falls too, then the bowl isn't likely to form. However, there is currently no evidence of that, so we can continue to monitor this pattern as a bowl.
If a breakout above the dashed blue trendline occurs (17000) that could send NANO up to test the bottom of the "big resistance zone." If you're wondering why this area is resistive, it's because of the action on the first two candles. You can see that they both have long wicks on the top, which indicates heavy distribution. In areas of distribution, there is a lot of selling that occurs. Therefore, we must be cautious of further selling pressure in that area. With that being said, if NANO eventually breaks above the big resistance zone, that would be a very bullish sign, and (for educational purposes only) a technical buy signal. However, we're aren't even near the bottom of the resistance zone yet. So, for now, we can focus on the development of this bowl formation. The MACD is attempting to form a weak crossover, and the volume is mostly bullish, so the underlying buy pressure appears to be healthy. Continue to use the 20 EMA, as an indicator of sustained strength, and monitor the development of the bowl. I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic. Au revoir.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-
If a breakout above the dashed blue trendline occurs (17000) that could send NANO up to test the bottom of the "big resistance zone." If you're wondering why this area is resistive, it's because of the action on the first two candles. You can see that they both have long wicks on the top, which indicates heavy distribution. In areas of distribution, there is a lot of selling that occurs. Therefore, we must be cautious of further selling pressure in that area. With that being said, if NANO eventually breaks above the big resistance zone, that would be a very bullish sign, and (for educational purposes only) a technical buy signal. However, we're aren't even near the bottom of the resistance zone yet. So, for now, we can focus on the development of this bowl formation. The MACD is attempting to form a weak crossover, and the volume is mostly bullish, so the underlying buy pressure appears to be healthy. Continue to use the 20 EMA, as an indicator of sustained strength, and monitor the development of the bowl. I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic. Au revoir.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-