Interesting price formation as we usher in the New Year. To begin with, a DASH Evening Star pattern is clear in the weekly chart and even though we expect short term buy pressure, the higher time frame pattern shall take precedence in our analysis.
Besides DASH, we can see buy pressure building up in LTC–where there’s a bull divergence pattern, Monero and to some degree IOTA.
AFTER CLEARING $1.1, WHAT’S NEXT FOR NEM?
So, after stringing some impressive higher highs and NEM closing the year with a strike at $1.1, nothing could be better for buyers.
We have this strong buy signal in the weekly chart encouraging buyers to continue ramping up their long positions. In line with this, buyers should be doing the same in our entry chart. It’s a no brainer really.
Now, in light of this and the weekly candlestick characteristic, it’s better to wait for a retracement before going long because last week’s candlestick ended up closing above the upper BB.
Before that, the upper limit or the minor resistance trend line of the current ascending wedge shall be a minor trigger.
DASH EVENING STAR PATTERN IN THE WEEKLY CHART
Before last week’s close, DASH had closed as an inverted hammer complete with that long signature upper wick and sellers expected a confirmation of that bear pressure.
Well, sells were confirmed and prices are back and trending within the BB. Because of last week bear candlestick, a 3-bar reversal pattern called the Evening star pattern was completed and sellers were also gifted with a stochastic sell signal turning from deep the overbought territory.
The combination of these three patterns mean one thing: Loading up sells. However, there is no need of excitement now.
For obvious reasons of course! As it is, its better to wait for a stochastic sell signal. Ideally, this should happen at around the minor resistance trend line or at around $1200.
IOTA BUYERS MAY PUSH PRICES TO $5
In fact as we can see, prices actually rebounded from that level after that stochastic buy signal on December 31.
As it is, the minor resistance trend line no longer holds. In line with this break through, should there be more buy pressure, immediate take profit lies at $5.
Coincidentally, that is where we expect sell pressure to jump in the fray and drive prices lower.
MONERO PRICES MIGHT TOUCH $400 THIS WEEK
In our entry chart, there is a stochastic buy signal. Furthermore, from our entry chart, Monero higher highs are pushing towards last week’s highs of $400.
This is encouraging to buyers. You see, after last week’s doji candlestick, buyers are now getting their grind back.
Despite the higher highs, I recommend short term buying and liquidation at around $400 especially if there is a bear reversal pattern or a stochastic sell signal forms.
LTC BULL DIVERGENCE MEANS LOADING LTC BUYS
Like everything in nature, nothing continues on in perpetuity. LTC buys or sells is no exception. Interestingly-and painful for buyers, LTC prices appreciated to as high as $400. However, at current prices its value is about 50% less than it was 3 weeks ago.
That’s how volatile price action has been. Well, there is a ray of hope at least from my technical point of view. From price action, we expect buy pressure after that bounce from $200. Furthermore, there is a bull divergence pattern and a buy signal in place.
Judging from the chart, the current bull candlestick might push prices above the middle BB. If it does, it definitely trigger buy pressure and that’s why I recommend buying.
All charts courtesy of Trading View
The post ALT COIN ANALYSIS: WILL DASH EVENING STAR PATTERN IN THE WEEKLY CHART DAMP PRICES? appeared first on NEWSBTC.