Qtum Analysis November 13, 2017

Qtum analysis

Qtum  Analysis November 13, 2017

On July 20, the launching date, Qtum opened at $202 but ended up testing $262 before plunging to as low as $5.6. Putting it simply, if you had bought at $202, you are still 96% down and probably looking for funds to pay your broker.

4 months later, optimism is low and bulls are finding it hard to break and close above that strong resistance line at $20. Despite the growing market cap-at $895M, demand is needed if 50% of invested fund is to be recovered.

In the daily chart, minor resistance line is found at $13. As observed this level repulsed bull pressure and in the first ten days of October.

 Afterwards you notice that Qtum continued trending lower relative to the upper BB and found support at around $8.5. $8.5 was also the support that laid the foundation of that intra-channel minor support trend line.  Coupled with increasing buy momentum turning from oversold territory, Qtum prices were driven higher to current levels.

Rising bull pressure and resulting bullish candlestick on November 7 lead to a close above the 20 period MA. This flexible resistance line had prevented Qtum from trending higher between October 13 and November 4. However, by Qtum closing above the upper BB on November 9 and a stochastic sell signal in place, long positions should be slashed unless prices continue appreciating above $13.

You can trade this pair in two ways. Since we are only taking longs in the 4HR chart, you can place a buy stop above the resistance line at $13. By doing so, chances of price correction to the downside after Qtum was overpriced yesterday would have been nullified.

Alternatively, you can wait for a buy signal to be printed in the 4HR chart at around $11 if the reversal higher is swift. For this to happen, the minor support trend line which has been effective in the last 8 days needs to be broken. If USD bulls dip lower then Qtum long entry will only happen if there is a buy signal in the daily chart probably at around $9.5.

 

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