Look at how prices are finding strong resistance at $0.60. Of course, from our previous analysis, the 1st Fibonacci extension line and the middle BB forms a confluence and is a ceiling for buyers.
As long as prices remains this way, bears are in charge otherwise, what is desirable is if we have a push and close above $0.60 and the odds for that are slimming with each bear candlestick that prints.
If we analyze this pair based on candlestick characteristics then we notice that the long lower wick which we saw last week might trigger buyers to enter this trade and push prices above $0.60.
There was a brief overshoot of bull pressure when the week opened but for the last two days, sellers have been on the fore front and are likely to push lower in the coming session unless we have prices breaching key resistance levels in lower time frames.
Notice the tight consolidation between $0.60 and August 2017 highs of $0.35? This can turn out either as a perfect accumulation phase, a Bollinger squeeze, for buyers as they aim to close above $0.60 or another highs for sellers as they look to break below our main support line at $0.35.
In a nutshell, going long or short now isn’t advisable and what is needed is a break out for trend definition. Considering the rate of depreciation, a bullish break out and close above $0.80 or the middle BB is desirable in the coming sessions.
NEM prices are moving inside an ascending wedge in the 4HR chart and as long as prices are confined inside this triangle, I recommend restrain.
As we have said before, all we need is a close above $0.60 for bulls to be in charge and if there is a ceiling then prices must breach the lower limit of this ascending wedge.