Besides EOS/USD, most high cap altcoins are trading above the middle BB-a level which is important in our analysis.
Even though we saw a general slowdown in bullish momentum, we expect prices to bounce back today or tomorrow and with every low these alt coins make, buyers should take advantage of the free discount and load up their longs when a stochastics buy signal prints preferably in the 4HR chart.
I will be watching how EOS and NEO turn out at the end of the day because all we need is a push and close above $11.5 and $130 respectively.
Let’s have a look at these charts:
Prices are oscillating around our main resistance line at around $0.50.
While yesterday’s prices were largely bearish with no definitive close above the middle BB as per our forecast, we shall still retain our bullish skew.
At the moment, we can see that bull momentum is increasing. This is definitely supportive of buyers who should be looking for buy opportunities in lower time frames.
Zooming in, price action development especially in the 4HR chart looks perfect and it that regard, Lumens reaction at around $200 looks to be a perfect spring board for buyers.
What a nice and clean confirmation of February 14 bullish candlestick and break out.
As per the break out strategy, I recommend scalpers to consider bullish signals in lower time frames with immediate targets at around $3-the upper limit of this consolidation range.
Because IOTA bulls seem to be in the driving seat as momentum indicator shows, positional traders should wait and see how bulls react at the first level of resistance at $2.2 -61.8% Fibonacci retracement level.
Otherwise, if there is a pullback, the middle BB-the break out line shall be our immediate support.
What we are seeing here is encouraging from an EOS long perspective.
Of course we have to stick to our entry conditions and wait for a clean close above $11.5 but the fact that bulls are maintaining prices above $9.5 is impressive.
Consider that prices are also at the middle BB which we all know is a strong resistance line which if prices break and close above it might signal periods of higher highs in consequent sessions.
I recommend spreading out long entries from here with stop losses below $9.5 because chances of a break out are high courtesy of this increasing bull momentum as the stochastics shows.
In the daily chart, it would be a mistake if we miss the genesis of the strong bullish candlestick evident in the weekly chart.
Yesterday’s price action played the part confirming the bullish break out candlestick-as per our expectation.
Now, given the nature of stochastics-hinting of increasing momentum, those who didn’t catch the initial ride up when prices were around $155 can wait for a retest of the middle BB and enter long in the 4HR chart.
After all, bullish momentum is high in the daily chart and chances of price correction following such moves are often high.
The good thing about the current NEO price action is that prices are trending above the middle BB and actively setting a firm foundation for a perfect bounce above $130 if there is a continuation of buy pressure today.
Notice the lower wicks and rejection of lower prices? This signals that buyers are truly in charge and syncing with what stochastics are hinting in the secondary chart.
Anyhow, our projection seems to on course according to our initial plan.
All charts courtesy of Trading View