There are high chances that this week’s Monero candlestick will end up bearish but I don’t really think it might close below last week’s lows.
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That’s how slow this week’s price action has been. Anyhow, as mentioned before, this is a common occurrence and tends to be the aftermath following periods of high volatility. What we anticipate though is price action being constrained between the 1st and 2nd Fibonacci extension levels.
That means, Monero price action has a $150 oscillation range before a significant bear break out happens or price action snaps back and trend resumes. If bears break below $250, then as we mentioned before, the middle BB will play a big role in providing the much needed support.
Lest we forget, despite these pockets of Monero buy pressure here and there, remember that prices is trending in a major bull break out that was triggered after August highs were cleared late November.
I won’t be moved if bears go berserk and drive prices all the way to main support at $165 or there about.
The daily chart is truly congested and moving horizontally within a $150 range. Despite the entropy, $250 support is clear and bulls are rejecting any move towards the 61.8% Fibonacci retracement.
After yesterday’s close, prices are likely to move higher and confirm bull momentum that built after January 16-17 double bar reversals. Already, we can see higher highs relative to the lower BB that begun on January 23.
As it has been the case after January 16 bearish engulfing candlestick, the middle BB is our immediate resistance. Any breach and close above 38.2% Fibonacci level or $350 will be a go ahead for buyers to ramp up their longs.
Check that close above the middle BB on January 25? That is important this what is causing prices to move higher in the daily chart.
I recommend buys only if prices close above $350 in the coming sessions and if prices do move down from $340, the third leg of a head and shoulder formation would be on top gear.