Pair: XMR/USD
Time Frame: 1-Day
Monero has shown progressive bullish movement since the clear cloud crossover on March 2019. The end of April and early May saw some bearish testing on the cloud, but resulted in a cloud bounce confirming the strength of the bullish trend. Halfway through May, the bullish sentiment started losing steam, and it appears that the 5th wave of the Elliot Wave pattern has been completed. A current consolidation is occuring, as with a potential formation of a head and shoulders pattern eventually favoring the bearish direction. If the current day to day bearish trend continues, it can be expected to touch the 38.2% Fibonacci retracement line at $79.12. Should it bounce of the 38.2% Fib. retracement, then it will possibly surge up to form the right shoulder of the head and shoulder formation. Unless bullish market sentiment surges it past that point, then the price can be expected to drop downwards to $71.94 or even down to $64.76.
Ranging Trade Opportunities:
As the current trend seems to be consolidating, there is a ranging window between $79-$95 that can potentially be scalped or grid-traded.
Bullish Trade Opportunities:
Entry opportunities exist at the $79 area if the expectation is that the %38.2 Fib. line will hold as a support. Profit can be taken within the $88-$95 window.
Bearish Trade Opportunities:
An easy possibly for a shorting opportunity exists at the $88 window, with profit taken a little above the $80 mark for reduced risk exposure. Additionally, one can wait until the head and shoulders formation is completed to enter a short at the $79 mark, with take profit marks reaching the $64 area.
As always, manage your risk!
-DC
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NOT INVESTMENT ADVICE. The opinions and analysis expressed above are strictly my own.
This analysis was sponsored by the Paribus Group.
Time Frame: 1-Day
Monero has shown progressive bullish movement since the clear cloud crossover on March 2019. The end of April and early May saw some bearish testing on the cloud, but resulted in a cloud bounce confirming the strength of the bullish trend. Halfway through May, the bullish sentiment started losing steam, and it appears that the 5th wave of the Elliot Wave pattern has been completed. A current consolidation is occuring, as with a potential formation of a head and shoulders pattern eventually favoring the bearish direction. If the current day to day bearish trend continues, it can be expected to touch the 38.2% Fibonacci retracement line at $79.12. Should it bounce of the 38.2% Fib. retracement, then it will possibly surge up to form the right shoulder of the head and shoulder formation. Unless bullish market sentiment surges it past that point, then the price can be expected to drop downwards to $71.94 or even down to $64.76.
Ranging Trade Opportunities:
As the current trend seems to be consolidating, there is a ranging window between $79-$95 that can potentially be scalped or grid-traded.
Bullish Trade Opportunities:
Entry opportunities exist at the $79 area if the expectation is that the %38.2 Fib. line will hold as a support. Profit can be taken within the $88-$95 window.
Bearish Trade Opportunities:
An easy possibly for a shorting opportunity exists at the $88 window, with profit taken a little above the $80 mark for reduced risk exposure. Additionally, one can wait until the head and shoulders formation is completed to enter a short at the $79 mark, with take profit marks reaching the $64 area.
As always, manage your risk!
-DC
----
NOT INVESTMENT ADVICE. The opinions and analysis expressed above are strictly my own.
This analysis was sponsored by the Paribus Group.