After Segwit 2X, potential BTC alternatives are still rallying. It’s something across the board and Monero is one of them. In 3 short weeks, bulls were able to break above August highs and undo a 2 month bear devaluation.
Many could argue and say that this was expected and yes they have a point. This being the 3rd wave for Elliot Wave traders, this leg up tends to be strong and so far, it has proven so with series of higher highs bouncing from around the 50% Fibonacci retracement level.
Since our immediate target of $153 has been cleared, the only forward guidance can be the Fibonacci extension levels and that paints a beautiful picture. If price action continues this way, the first and the lower limit of bull take profit level is at $215, otherwise it is ideally at $230.
Ideal break above key resistance or support lines should be marked by strong candlestick. Monero bulls did it spectacularly. To mark this key milestone, its value shifted $37 to the upside with impressive above average volumes.
This recent break above shows the traction Monero has had over the past 3 weeks. From historical price action, following such strong volatility, we expect today to be a bit slow and even a retracement towards support might happen. If it does, then we continue loading our Monero longs on these dips.
As long as emotion is involved, entries using stochastics as a filter is often tricky especially in short time frames when traders are trying to pick out tops. It can be a futile and frustrating exercise.
Prior to this move up, stochastics were overbought but still Monero moved according to trend defined in the weekly chart. So we shall only be taking longs where applicable and avoid the allure of fading the market in an uptrend.
Our immediate support is at $153 and at $143. Ideally, that $10 range is a perfect buy zone but it depends on when and at what price level a stochastic buy signal will be formed at.