That's the calm before the storm.
Ok guys, so the bears arrived here today! It’s been a tough day for the bulls, but how worried should we be in this situation? Well, let’s see. First, if you are new here, I invite you to follow me and be part of our community, so you will keep in touch with our trades and analyses. I’m sure you’ll find something helpful!
Second, the problem with XTZ is the low volume. It will only engage a good bullish trend when this volume increases (see the divergence, evidenced by the pink arrows?), and the price found a strong resistance at the 61.8% fib retracement, which is the first challenge XTZ has right now. This kind of scenario is perfect for the bears strike the bulls. But not everything is lost here!
Despite of it, we are in a bullish trend since March, and the short-term trend is sideways, or a congestion if you will, but this kind of movement often precedes a big move. If the next move will be up or down, nobody knows. In any case, we can set targets here.
If it’s up: The price is near several supports now, and if XTZ breakout the fib retracement it may not only seek the previous top at the “resistance zone”, but it will trigger a cup and handle at the daily chart, which could lead the price up to around U$ 4 again. Before we talk about our “if it’s down” plan, let’s see the hourly chart:
The bears defeated the pink line for good, and the price found a resistance at the 21 ema yesterday, as I said it could.
Now, if it's down: it seems this light blue line is a support, and the bears have another support at the dark blue line below. If these supports are lost, then its target will be 38.2% fib retracement. So, this is it, make your gambles! Long, short or nothing? In any case, tomorrow I'll update you again!
Remember to follow me, I’m a trader who uses the classic technical analysis (barely any indicator, just the candles and the volume). Like this idea if it helped.
Thank you very much.
* LIKE this idea and FOLLOW me, because:
- Here, you will see clean charts;
- Trades with clear risk management;
- The best of Dow Theory, Price Action and Candlestick psychology;
- Chart patterns with statistics. *
* My name is Nathan, I'm a trader and portfolio manager and I'm here to LEARN. Leave your COMMENT and FOLLOW me to keep in touch. *
Second, the problem with XTZ is the low volume. It will only engage a good bullish trend when this volume increases (see the divergence, evidenced by the pink arrows?), and the price found a strong resistance at the 61.8% fib retracement, which is the first challenge XTZ has right now. This kind of scenario is perfect for the bears strike the bulls. But not everything is lost here!
Despite of it, we are in a bullish trend since March, and the short-term trend is sideways, or a congestion if you will, but this kind of movement often precedes a big move. If the next move will be up or down, nobody knows. In any case, we can set targets here.
If it’s up: The price is near several supports now, and if XTZ breakout the fib retracement it may not only seek the previous top at the “resistance zone”, but it will trigger a cup and handle at the daily chart, which could lead the price up to around U$ 4 again. Before we talk about our “if it’s down” plan, let’s see the hourly chart:
The bears defeated the pink line for good, and the price found a resistance at the 21 ema yesterday, as I said it could.
Now, if it's down: it seems this light blue line is a support, and the bears have another support at the dark blue line below. If these supports are lost, then its target will be 38.2% fib retracement. So, this is it, make your gambles! Long, short or nothing? In any case, tomorrow I'll update you again!
Remember to follow me, I’m a trader who uses the classic technical analysis (barely any indicator, just the candles and the volume). Like this idea if it helped.
Thank you very much.
* LIKE this idea and FOLLOW me, because:
- Here, you will see clean charts;
- Trades with clear risk management;
- The best of Dow Theory, Price Action and Candlestick psychology;
- Chart patterns with statistics. *
* My name is Nathan, I'm a trader and portfolio manager and I'm here to LEARN. Leave your COMMENT and FOLLOW me to keep in touch. *
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