Change of fortunes? Maybe, we can’t be sure. But really, it’s still a no-no for me to recommend buys. From the way things have been, we r need a strong buy signal if at all NEM buyers are beginning to jump into this trade.
Anyway, looking at the chart and it’s obvious that prices are gravitating and aiming to close above the middle BB which as we have said was a strong support line and now resistance. Besides that grand gesture by buyers, we shall also remember that prices tested August highs at $0.34 and thereafter we saw this rejection of lower lows-clear in the lower time frames.
Now, here is the thing. First, we must acknowledge that most alt coins under our radar are reversing from August highs-break above them late last year meant prices exploded and peaked in December.
This also means that we might-and are-playing within one big break out pattern where the second phase-the retracement looks to have been completed assuming this week’s prices end up bullish and hopefully above the middle BB.
In the daily chart, the reversal at $0.34 is brazen and clear for everyone to see. In fact for distinction, there is a double bar bullish reversal pattern in the midst of long bearish candlestick which before January 6 were banding along the lower BB.
Today, what is needed of bulls is to push prices above $0.55-or the 78.6% Fibonacci retracement and maintain them above this level. From there now, we can begin eyeing the middle BB which is our penultimate resistance which buyers need to close above.
As mentioned above, prices should close above $0.55 today and that looks likely to happen if we zoom in and check price developments in our entry chart.
Now, for one price action is trending above the minor resistance line, the middle BB and look set to increase their appreciation rate assuming the inverted head and shoulder patter pan out as expected. The base line of this pattern is at $0.70 so if there is a close above this level then we initiate buys tomorrow.