Monero Analysis (XMR/USD) December 14, 2017
Like most alt coins and BTC alternatives, Monero is trending at all-time highs. Technically, we can see that bulls are in charge given the number of resistance level it has broken in the last three weeks. These levels are officially our support lines and in addition to the middle BB, we expect these levels to be our spring boards every time there is a correction.
Even though the trend is bullish, we have these subtle bearish pressure as hinted by those long upper wicks and the narrowing %k and %d. Correction is likely but we wait and see if price action will hit the second Fibonacci extension level at $400 before dipping and gifting bulls another buying opportunity.
As the daily chart shows, Monero price action is immune to bears. There was a bear divergence at August highs and a potential double tops but instead Monero bulls surged and hit the first take profit level as projected by Fibonacci extension at $250.
This level is now our immediate support as marked in the chart. Notice the past three candlesticks have been bullish are moving away from the support line and now banding along the upper BB but price action is still confined within December 6 high-lows of $356 and $209.
As such, any break above $356 will entail a break out and continuation of bull pressure.
Trading in the 4HR chart is easy as it comes. We watch how price action reacts at the minor resistance trend line and the 20 period MA.
As the weekly chart dictates, we shall only be taking buy signals and even if stochastics are levitating around the overbought territory with a sell signal, any close above the minor resistance level will invalidate that sell signal.
We also have a double bar bear reversal pattern but since we are bullish, it’s either a break above resistance or a rebound from the 20 period MA that will trigger buys.