Most altcoins didn’t recover immediately as expected and even though most are, we shall remain neutral until after there is confirmation of our previous forecast. That might happen today and I’m particularly checking out Monero, NEO and Lumens which are reacting at key support lines.
Lumens and LTC for example have been moving horizontally along $0.30 and $180 respectively for the past 3 days or so and this makes it possible that a break out might happen in the coming sessions. This is why I will be watching these two coins today.
Let’s have a look at these charts:
The momentum on March 10 didn’t provide enough thrust to push Lumens prices higher as per our initial plan. Instead, what we are seeing now is a rebound and basic consolidation in lower time frame.
It’s clear that yesterday’s prices were positive but even this means Lumens is still moving along $0.30, our level of interest over the past couple of days/weeks.
In my view, as long there is no break above $0.35 and the middle BB in the daily chart, we shall remain bearish as we anticipate further price erosion towards $0.25 and lower.
In line with this, these technical formations demand that we hold on our long guns and wait for proper buy/sell triggers as per our previous forecast. After all, in the weekly chart, bulls are rejecting lower lows and you can easily see the influence of the 20 period MA in that chart.
Generally, Monero prices are on a slide but relative to other coins, bulls are putting a brake on this depreciation.
From previous analysis, our emphases laid with the confirmation of March 9 buy pressure and that didn’t happen on Sunday. Instead sellers drove prices to the break out level and the 61.8% Fibonacci retracement level at $250.
Yesterday’s candlestick was positive and it will mean nothing for buyers if today’s doesn’t end up higher. Ideally-and if the trend resumption phase is actually on, I would like to see prices above March 8 highs and immediate resistance at $350.
I will recommend swing traders to buy with every stochastics buy signal and place their stops just below $250 in lower time frames.
After March 10, we were expecting buyers to jump right in and drive EOS prices higher so as to correct that undervaluation on March 9. That also didn’t happen but at the moment-following March 11 candlestick, chances are prices might recovery and trend higher in subsequent sessions.
In my view, considering the oversold stochastics and a buy signal, EOS traders are better off if they look for long opportunities in lower time frames and if they do, stops should be below March 9 lows of $5.2.
On the other hand, conservatives should wait for bull pressure confirmation and the most ideal level for that is $9.5. However, the 50% Fibonacci retracement line and the middle BB at $7.5 can act as the first level of bullish triggers allowing early buyers to enter on pull backs.
The net gain over the past 3 days is almost zero and if it continues like this then we shall likely have another BB squeeze in the lower time frame along our main support line at $180.
Remember, it’s a patience game and ideally, risk averse traders can buy after $230 assuming this stochastic buy signal is inviting for LTC bulls.
At the moment though, if there is a follow through of yesterday’s bull candlestick then chances of $200 and the middle BB being hit is high.
As long as NEO prices are trending above $85 and the 61.8% Fibonacci retracement level then I will take a bullish stand. After all, $85 is a key support line in our analysis.
As per our previous highlight, there is a little bit of undervaluation-March 9 candlestick- that needs correction and that will only happen if buyers push prices higher.
While yesterday’s candlestick is bullish, I recommend and actually take a neutral stand here until after there are higher highs closing above $100 and that might happen today if NEO buyers push prices higher.
All BitFinex, Bittrex and CoinBase charts courtesy of Trading View
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