For machine economy proponents and IoT fans, IOTA should be their lube. Who needs costly lube? Me neither. But unfortunately, people think it’s cheap and they want to bring everything to equilibrium and that’s why despite the over-valuation and the consequent lower lows, prices couldn’t dip below $3. Yes, prices couldn’t close below the second Fibonacci extension level after prices peaked at $5.8.
Overly, IOTA bulls cannot complain and why should they? Prices cleared several resistance levels as projected by the Fibonacci extension levels and the 3rd and 4th levels looks likely to be retested in the coming sessions now that IOTA buyers are jumping in.
Check out last week’s candlestick and notice that they reversed strongly from $3 and failed to confirm the bear candle printed the week before. Of course this is encouraging for buyers. In any case prices banding along the upper BB in lower time frame signals buy pressure and it is always wise to trade with the trend.
Our immediate resistance level in the weekly chart is the 3rd Fibonacci extension level at $4.
In the daily chart, we still have these lower lows and prices are still consolidating within December 22 candlestick. That bear engulfing candlestick was humongous.
As it is, I will fix its High-low as IOTA’s short term resistance and support levels going forward. From the set up, the middle BB is our immediate resistance line and even though we have no clear buy or sell signal printed by the stochastics, any confirmation of December 31 bull candlestick might confirm lead to a stochastic buy signal being printed.
With the consolidation in the 4HR chart, the 20 period MA is automatically rendered useless. From the chart, we can see that there is a stochastic buy signal and that price action has broken and closed above the minor resistance trend line.
In the weekly chart, our immediate resistance is at $4 as it is the 3rd Fibonacci extension level and that is the level where we should be watching in our entry chart. It is significant for both buyers and sellers.
Any close above that also mean a close above the middle BB in the daily chart and buyers should look to load up their long positions.