XLMUSD is trading within the MA50 and MA200 on the 1D chart after the recent top at 0.0670.
Levels to watch:
- January's uptrend stopped exactly on the lower high trend line of the long term channel down that started in May.
- That lower high was exactly on the MA200 on the 1D chart. The previous lower high (November 05) was also formed on the MA200.
- So far the price has found support above the MA50 1D.
- The Support is set at 0.04070 and the Resistance at 0.0900.
- The MACD turned bearish.
Projection:
- Since the uptrend stopped on the lower high of the May channel down (which is the dominant trend) and the 1D MA200 held (as it did on the previous lower high), there is no reason at the moment to believe that the same pattern will not be repeated and go for a new lower low, especially with the MACD turning bearish. Technically if the MA50 breaks we should expect a run towards the 0.04070 Support. If however we have a 1D candle close above the MA200 (hasn't happened since June, we only had wicks), then buyers may push is as high as the 0.0900 Resistance.
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Levels to watch:
- January's uptrend stopped exactly on the lower high trend line of the long term channel down that started in May.
- That lower high was exactly on the MA200 on the 1D chart. The previous lower high (November 05) was also formed on the MA200.
- So far the price has found support above the MA50 1D.
- The Support is set at 0.04070 and the Resistance at 0.0900.
- The MACD turned bearish.
Projection:
- Since the uptrend stopped on the lower high of the May channel down (which is the dominant trend) and the 1D MA200 held (as it did on the previous lower high), there is no reason at the moment to believe that the same pattern will not be repeated and go for a new lower low, especially with the MACD turning bearish. Technically if the MA50 breaks we should expect a run towards the 0.04070 Support. If however we have a 1D candle close above the MA200 (hasn't happened since June, we only had wicks), then buyers may push is as high as the 0.0900 Resistance.
If you like this idea give us a like, follow and share your thoughts in the comments section below. Remember to stay tuned for future technical analysis , news, updates, and more from PrimeXBT!