NEM (NEM/USD) Analysis December 19, 2017
Like other alt coins, NEM bulls are pumping prices. The pump rate is so high, December 10 highs of $0.76 were cleared after what appeared to be a slow week.
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Other than the obvious candlestick hugging along the upper BB, the first take profit level as projected by the Fibonacci extension level will be our first support line. If prices pick up from there, the second take profit level will be $0.93. This is likely.
Notice the diverging stochastic %k and %d signals and relate it to the price action moving along the upper BB. These two sync. Unless maybe there is a correction towards or even below $0.58-which we expect, then we should be looking for longs in the lower time frames.
As evident in the daily chart, NEM is trading within a bullish break out strategy.
Notice the quick break above September highs resistance line and consequent retest some few days later. There after, NEM value doubled.
The way price action is set up is easy. If you had bought after the retest then you should lock in some profits because we expect to find resistance at around $0.80 which is December 16 highs.
Do you notice reduction in bull pressure with the way candlesticks are moving away from the upper BB? Well, it is. Complete with long upper wick within December 16 high lows. As such, $0.54 will be our first and immediate support line if USD bulls prevent further appreciation above $0.80.
In our entry chart, we shall shift our attention to the 20 period MA and $0.67 which should be our immediate support levels.
Fact is, price action is still trending within December 16 High-lows and since $0.54 is our ultimate support, bears should shift gears and drive prices lower only when they close below our support levels.
Stochastics are bearish and if they turn lower, then every NEM dip is a buying opportunity.