After a spin and horizontal consolidation along our clear resistance trend line and the 20 period MA, sellers took charge and 12.10.2017 candlestick closed as a bear. There is also a long upper wick bouncing off resistance and this means we go short today. Place a stop loss above $32 and aim for that support zone between $14 and $20. Refer Figure 1 (Above): NEOUSD-Daily Chart-13.10.2017


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Figure 2: DASHUSD-Daily Chart-13.10.2017

Notice the bear volume spike on 12.10.2017 and price failure to close above the support turned resistance trend line at $320. So far, price action is moving higher in lower time frames but as long as it doesn’t close above $320 – a region of strong resistance zone as shown by that confluence of critical lines, bears will be in charge. After all, since price tested support at $250, there has been no significant trend established rather than retests, whipsaws, and consolidation which is profitable for scalpers. Sellers should short and aim for that support and first take profit level at $220.


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Figure 3: IOTUSD-Daily Chart-13.10.2017

For any support or resistance level to be convincingly broken, price slide or appreciation must be accompanied by the large candlestick. Well, 13.10.2017 candlestick was huge, trading at a $0.10 range and closed at $0.38. This bearish volume surge drove prices lower as 19M bears jumped in. At $0.48 highs, the resistance trend line at $0.50 stood and today it looks like price action will trend along the lower BB, probably band and close lower.


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Figure 4: Monero-XMRUSD-Daily Chart-13.10.2017

12.10.2017 candlestick closed as a bear, turning away from the support turned resistance trend line at $86.3. From break out pattern sub-sections and trading strategy, there must be a retest and right now, as price action trends above $87, it provides a perfect opportunity to initiate shorts in lower time frames. Looking at the volume, you can note that there has been a jump in volumes to around $20K, only superseded by 09.10.2017 volumes which recorded 25K breaking above the daily volume average. Both of them are also bears meaning that bears are in charge despite the temporary trend higher. Of course, given the volatility, our bear projections will be invalidated only when price and bulls push higher and closed strongly above $90 or the support turned resistance trend line.


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Figure 5: LSKUSD-Daily Chart-13.10.2017

Two days of wild swings it has. Note that bearish volume upswing as yesterday’s candlesstick closed. You will detect that as sellers jumped in, volumes spiked to 781K-way above daily average of 585K and then boom, the daily resistance trend line and the 20 period MA acted as a ceiling preventing further price appreciation. Secondly, look at how the previous stochastic buy momentum has begun converging meaning buy momentum is subsiding as prices turn lower. This is turning out as a bear break out with classic characteristics of that trading strategy. Best time was to short yesterday as recommended with a stop loss above support trend line at $6.1. However, since swings are toning down, you can initiate sells every time there is a retest of resistance trend line with immediate take profit level at $4.2

Contributed by Dalmas Ngetich, an expert with 3 years in Forex, Commodity and Cryptocurrency trading. All charts, courtesy of Trading View
Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.



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