Etherium Classic Analysis November 22, 2017
The most important and visible price activity to pick up in the weekly chart is that ETC surge and close above the 20 period MA. That is very important and we saw what happened next after ETC shifted $11 to reach highs of $23 on week ending November 12.
We insist the importance of that close despite the long upper wick denoting USD bull pressure. If this week is to close as a bull then it must close above $19.60, an intermediate resistance level last tested by close of September 3 and July 16 weekly candlesticks.
ETC bull momentum is positive as we have seen with the stochastics printing a buy signal after that strong reversal from the 61.8% Fibonacci level.
Like the weekly chart, bull momentum is reflected by the steep ETC climb over the last 18 days or so following that bullish break out on November 2. There was a brief correction after ETC prices became over-valued on November 10 leading to that double bar reversal pattern.
We can easily judge how momentum was strong by the speed on which the reversal and bullish trend picked on after wards. However, from ETC price action, the speed of this appreciation is slowing if you compare how prices are moving relative to the upper BB. Since November 15, volatility and participation levels have been on a down trend as we can see from the volumes chart. Secondly, check out yesterday’s long upper wick when prices tested $19.60 resistance level.
After two weeks of ETC rally, I recommend sells today. This is purely advised from price action behavior in the daily chart. The lower lows relative to the upper BB means reduced volatility and the low participation levels means the rally has been running on hot air and that is why we should sell today. Already, there is a sell stochastic signal turning from the over-bought position and this is happening around $1.20 from main resistance line at $19.60. Our bear target is between $15.4 and $16.