Today’s Analysis – XTZUSDT- trading in a valid rising wedge, approaching key resistance where a rejection will be plausible,
Points to consider, - Rising wedge pattern (Bearish) - 21 MA immediate support - Daily S/R Resistance (.618 Fibonacci Confluence) - RSI Respecting Trend - Stochastics Bearish Divergence - Volume Below Average
XTZUSDT’s immediate Price Action is trading in a bearish Rising Wedge pattern. This allows us to have a bearish bias on the market.
The 21 MA is acting as dynamic support, as long as price respects this average, XTZUSDT will continue grinding up.
Daily S/R is strong resistance as it is in technical confluence with the .618 Fibonacci. The 200 MA is also lurking from above, an initial rejection here is expected; this may lead to a break of the Rising Wedge.
The RSI is currently testing its trend line; a break will coincide with Price Action rejecting. The Stochastics has a valid bearish divergence and a sell cross, this is indicative of further downside.
Furthermore the current volume is below average, an influx is highly probable when a break up or break down comes to fruition.
Overall, in my opinion, XTZUSDT is a valid short with defined risk; Price Action is to be used upon discretion/ management of trade.
Hope this analysis helps
Thank you for following my work!
And remember,
“The market can stay irrational longer than you can stay solvent.” – John Maynard Keynes
This is great work. By saying 21MA and 200MA on the 4h chart, are you using multiple time frame analysis?
AzizKhanZamani
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@AryaxS thank you 🙏 and yes I’m referring to the 200MA also being resistance on the 4HR chart, but if XTZ can clear that it will change the trend on the Daily by establishing a higher high, this analysis is purely price action on the 4HR timeframe taking HTF structure in consideration