Maybe the IOTA correction is over, maybe not. It’s upon price action signal the final decision as we don’t know about future prices. However, I still hold on to my short term bearish skew until there’s equilibrium in the weekly chart.
Fact is price action is still oscillating within week ending December 24 candlestick and even though we can go ahead and assign resistance and supports at its high low, it won’t make sense because of the margin between the two levels. They are well spread out and outliers relative to recent IOTA prices.
So, from price action, our first resistance level will be at $5.5 while support lies at the second Fibonacci extension level at around $3. The two bear candlesticks which closed above the upper BB are our guide and reason for our skew. If this view is to hold then last week’s high at $4.3 shall act as a price ceiling and this week’s highs must close below it.
Already, there are hints of that because as we can see, buyers are finding it hard to press and close above $4.3. The upper wick is beginning to show in the weekly chart.
In the daily chart, a stochastic buy signal has printed after a couple of higher highs but that buy pressure needs to temporary negate our bull forecast by blasting through last week’s high-marked by December 27 bear pin bar at $4.3.
Prior to yesterday’s close above the middle BB, previous candlesticks following December 22 dip were all below the 20 period MA.
On the 4HR chart it is easy to note how IOTA prices are reacting to last week’s highs. We are net bearish and we are therefore looking for shorting opportunities with the hope of riding with the expected trend in the weekly chart.
Already, there is a stochastic sell signal in place turning from deep the overbought territory coinciding with the current wave of lower lows. Short term traders should short now and aim at $3.