Etherium Classic Analysis (ETC/USD) December 20, 2017
This is not the first time I’m saying ETC is under-valued. Yes, it is a gut feeling but when it is mixed with fundamental and technical consideration, then you have a very strong reason to jump in and trade when an opportunity presents itself.
Two weeks ago, we were talking about tepid prices, ETC being a bummer and generally slacking this coin as being that black sheep in the Ethereum family. Well, its turning out to be rules over money after that DAO initiated hard fork. In the weekly chart, we expected prices to “floor” at $25 and it did.
Thereafter we projected ETC to spring board to $41 after which we should have moved our stop losses to $30 or higher. That was the plan but we didn’t expect it to be this fast. Currently, based on our initial prediction, the take profit level has been cleared.
I now expect a little bit of a slowdown which I’m already seeing. Those long upper wicks are not beauty marks loved by buyers, the longer they are, the more the losses. ETC definitely has room for some upward potential and unless you want to swing or scalp, of which you can do that in the lower time frames-preferably at the 4HR chart.
If you want an investment, this is not the right time to buy or do you want to buy at tops? Wait until a proper buy set up pops up in the daily chart.
The 4HR chart is a swinger’s club and for good reasons. Projected take profits are not guaranteed and it’s safe to get in and out when opportunities present themselves.
The middle BB, or the equalizer has been a reliable support with ETC buyers getting in with every retest. Using stochastics as smoothers-because we don’t want to be buying at every dip, can lead to profit.
From price action, I’m not buying today. Reason? Well, rules over money. A buy signal is missing and with those long upper wicks which shouts “sellers!” I’m not ready to sweat bullets. Its winter already. Better wait and enter comfortably when our conditions are met.
If there is a correction today, potential support is the middle BB with $33 an outlier which can be tested. Best practice, wait until a stochastic buy prints at the oversold zones of the secondary chart.