Why the priceline moving down again:
In the previous article we have already examined that after the previous move the priceline was not able to cross up the 200 resistance. And dropped down on 100 support this time the same move occurred again the even though the priceline moved up to 350% but could not cross up the 200 and again dropping down on the 100 . So far the priceline is above the 100 but if it will hit on the 100 then we can use the different indicators to examine that whether the priceline will take another bounce from this or it will break down the 100 this time.
My combination of indicators to determine whether this support will be broken or not:
For example I'm using the William top bottom indicator with the combination of . If the William top bottom indicator will turn green it's mean that it will be giving signal that the sellers are active and after turning green when it will be turned gray then it is the signal that the buyers are getting active, with that signal if the momentum will be turning and we will be above the 100 then in my opinion the priceline will take another bounce from 100 support.
What if the priceline will breakdown the 100 SMA:
In case the priceline breaks out the 100 on 2 day chart then we can witness a very strong move by the price action of steem. And in this situation this strong move can help the priceline to complete the final leg of an other big pattern. As we can see that after initial leg the A to B leg is retraced between 0.382 to 0.618 Fibonacci level and B to C leg is projected between 1.13 up to 1.618 and this is the of A to B leg. Here I have ignored some extra spike because all other legs are driven as required for the pattern. Now if the final leg will be retraced between 0.886 up to 1.13 level then the price action should take another powerful at least between 0.382 to 0.786 of C to D leg. And this can be another up to 360% profit potential move. As per Fibonacci sequence of this pattern the buying and sell targets should be as below:
Buy between: $0.1219 to $0.0699
Sell between: $0.1931 to $0.3229
This idea is for long term and midterm traders, I will be keep posting more trading ideas.
Note: This idea is education purpose only and not intended to be investment advice, please seek a duly licensed professional and do you own research before any investment.