Besides Lumens, other high cap altcoins under our radar were bearish and moving within February 12 high lows.
Will there be replication of Lumens break above today? Well, it depends on if these stochastic buy signals are reflective of underlying buy pressures that could actually lift prices past resistance levels from which the 20 period MA plays a big role.
For now, I recommend buying Lumens in small proportions and spreading out entries until after there is a close above $0.50 in the coming sessions-assuming that happens today.
Let’s have a look at these charts:
After periods of higher highs and consolidation, Lumens prices are now trading above our bullish trigger line of 40.40.
Of course, we can begin looking for long entry signals in lower time frames but as we have said time and time again, the middle BB is a significant resistance line that is worth waiting for a close below or rejection.
Those prices will be around $0.50 or the 38.2% Fibonacci retracement line and when that happens, I will recommend fine tuning longs in the 4HR chart as we bulls aim for $0.70 in the short term and $1 in the medium term.
Yesterday’s prices were oscillating within February 12 high lows and even if I don’t recommend positional entries in this pair, scalpers can have a shot or two in the short term.
First, for that to happen, bulls should be active and if possible push prices past the third layer of support-the middle BB, at $2.
If that happens today, then buyers can be in a pole position to tune entries in lower time frames and take long signals only because anyway, stochastics in the daily chart is lifting from the oversold territory and could possibly buoy buyers today and in the coming sessions.
If we consider February 12 candlestick and bring yesterday’s price action into the picture then we realize that EOS net movement is about zero.
Yesterday, bears drove prices lower and despite the previous day being bullish, prices were pretty much confined within that bull candlestick.
Now, these swings are not profitable and few scalpers can actually turn in a profit without the risk of over trading. This is why patience is paramount.
Basing our reasons on yesterday’s analysis, we need a close above $9.5 and middle BB if prices are to rally and a bear drive below $6, the double bar reversals if sellers are to take lead in the coming trading days.
Of course there is a direct relationship between yesterday’s close above the middle BB and the way stochastics are turning from the oversold territory if we check the secondary chart.
This is pretty good from a buyers perspective and all that remains is a surge past $170 as per our LTC trade plan.
If that happens today, buyers can begin picking out buy signals in lower time frames from tomorrow.
Like EOS, nothing much can be said of NEO.
There is obvious price limitation and as long as NEO remains within February 12 high lows, yesterday’s analysis will still hold true.
All charts courtesy of Trading View