Monero buyers are definitely in charge and it is easy to see why. From previous mentions, we were expecting dips towards the middle BB for equilibrium purposes now that prices were a little bit over-extended after week ending December 24.
However, the following candlestick failed to confirm the overextension and it has remain pretty much the same thing ever since. Buyers are strong and after last week’s close above $400, I expect the 2nd Fibonacci extension level at around $285 to act as our immediate support.
But if is there is a strong correction, last week’s lows of $300 shall be our second support level on the lower side. Of course from the way candlesticks are aligned, our ultimate bull target is $530.
In the daily chart, it’s easy to determine the general trend and note that buyers are in charge. This buy pressure is high and the middle BB is acting as a strong and reliable support.
After what appeared to be a shift of trend following those two engulfing candlesticks on December 21 and 22, buyers jumped in and shored prices pumping it above the middle BB.
A relieving thing especially for buyers is that bullish candlestick on January 6 with a quick confirmation the next day which appears to jerk prices. This is important especially for trend traders who trend definition before initiating longs.
If today’s Monero prices manage to close above December 26 and January 2 highs of $430, then it is likely that buyers would be in the driving seat and prices will quickly edge towards $530.
However, any retracement back into the consolidation clutter and I recommend staying on the sidelines until a clear signal prints.
Notice that double bar bear reversal at resistance? That is good news for buyers. I have pasted a Fibonacci retracement tool between last week’s high lows and my expectation is a possible reversal at around $350.
This is the 61.8% retracement level which also coincides with the accumulation lows on January 5 and 6. If prices shot up from there then it is highly likely that $400 will be cleared.
On the flip side, if prices fail to dip towards $350 and continue rising as per the daily trend then any close above $430 is a buying opportunity with stops at $400.