NCASH in potential ABCD triangle or inverse Head & Shoulders.
Ideal scenario highlighted with light blue arrows: Price pulls back all the way to the very strong support at 0.00000375 and goes up from there. Ideal target would be the resistance at 0.00000440.
Other scenario with Inverse Head & Shoulders pattern highlighted with pink: Price bounces on the current level resistance and forms a inverse H&S. Not so ideal as there are multiple strong resistance lines along the way.
Regardless of the scenario I would only enter after a breakout confirmation of the downtrend trend line.
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It looks like support level at 0.00000406 has become resistance now. As long as the volume stays low, price should continue to fall to the next support level highlighted on the chart.
For some reason I did not include the volume indicator on this chart. For a breakout to be valid we need to see a huge spike in volume when passing over the downtrend line. Until then we are steadily going down.
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Volume spikes we are looking for marked with arrows. Current volume is decreasing which points to an incoming breakout.
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No valid breakout. Trade not entered. The price will probably go sideways for a while. All signs still bearish.
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We have reached our ideal position after all. However, the price action is really weak. I would not be surprised if the support does not hold. Still.. if we get some volume this could still work.
Any update? Went down to 391 and went up to 405 coming down after that. I’m assuming that means that is an a downtrend?
Thunds
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@Ozbo1776, We are patiently waiting for the downtrend action to break. Small spikes in the price like you mentioned are to be expected. We always need to keep in mind the big picture.