One thing is common for most large cap alt coins especially after Segwit 2X debacle-they all gained by double figures. For Monero, this is the third week of steady appreciation and from the way stochastics momentum is set, it is likely that the rally up will continue with immediate target at August highs of $153.
With hindsight though, most price reversals or bounce backs from the 50% Fibonacci retracement levels end up testing the 161.8% extension levels, the %k and %d stochastic signals means that even if there is a correction, it will be temporary and present wonderful buy opportunities.
The daily chart, it is worth noting that that fake bear double bar reversal pattern on November 9 and 10 was a perfect spring board for Monero to break and close above the main resistance trend line on November 11.
That reversal also happened at the 38.2% Fibonacci level and it meant that despite the over-bought stochastics in this time frame, traders were trading break outs and syncing with the weekly chart trend which is still bullish.
Yesterday, sustained Monero demand lead to prices closing above our resistance line at $133 and this was the first time in 85 days for this break and close above to happen. The last time was that Monero leg up in late August before price peaked at $153.
In the 4HR chart, we shall keep our entries simple and clear. Even without doing anything on the chart, it is easy to see how price action has been steady and moving up. Even better for Elliot traders, the recent price movement has been a classic ABCDE move and right now, Monero is at position “E”.
The main support trend line in our entry chart has been preventing price from depreciating over the past 3 weeks. However, from a stochastics point of view, there is a bearish divergence as momentum is decreasing while prices are moving up without strong buyers.
There is also a stochastic sell signal in place and as such, I advise sellers to take this trade and capitalize on the divergence before a buy signal is printed later on in the week.
As a precaution, Stop loss will be at $142 just in case the bear forecast is nullified.