The recent Monero surge has been impressive and at the moment, prices are testing a key resistance line at the 38.2% Fibonacci retracement level. We must remember that there is a hard fork in the pipeline and that could the reason why Monero is rallying.
This is not the only coin in our focus. Despite the small marginal gains, LTC prices are trending above our ascending wedge and all we need is a surge past $225 or February 26 highs before we can actually signal buy entries.
Let’s have a look at these charts:
For us to warrant Lumens buys we need a confirmation and that will only happen when prices breach $0.40, a key trigger line in our analysis.
From yesterday’s price action, we can see attempts of higher highs and for a moment, Lumens prices were actually trending above the middle BB and $0.40. What we need is a convincing close or a break-out per say and any such patterns will signal longs in line with yesterday’s forecast.
In the 4HR chart, sellers are actually driving prices lower and with a double bar reversal and over bought stochastics, chances are prices might trickle lower and even test the middle BB at $0.35 or the break out line at $0.30.
Either any, considering our bullish skew and the trade pattern we are in, buyers can look for long opportunities and can enter when there are hints of reversal at these key support lines.
There are some pretty nice price developments in this pair and while we remain overly bullish, buyers must recognize that Monero is testing a key resistance line.
However, before we delve deeper, let’s also acknowledge the fact that buyers are firmly in charge and are actually the driving force behind this resurgence.
From the look of things, we are in the 3rd phase of a bullish break out pattern and as it is, Monero might fail to close above the 38.2% Fibonacci retracement level which is our immediate resistance line. Furthermore, notice how the bullish candlesticks are now banding along the upper BB in the daily chart.
In fact in the 4HR chart, bears are rejecting higher prices and suppose there is a slide, our buyers might found support at $330 and if not, then the 50% Fibonacci retracement level $300 looks to be viable level.
I will be neutral today and if today is bearish, then chances are sellers might actually drive prices towards our support levels as mentioned above.
With yesterday’s slow EOS price movements, our forecast is constant.
Now that volatility is low, I expect the middle BB in the 4HR chart and $8 to remain our short term support as we expect higher highs in the coming session.
For initiation purposes, bulls might push higher today and if we see buyers clearing yesterday’s highs of $8.3, then we shall remain positive and even shift our short term buy targets to $10.
Otherwise, any depreciation below $7.5 will mean out stops are hit and sellers might find resistance at February 26 lows of $7.3.
There is a positive follow through right there and even though LTC bulls are failing to find the necessary momentum for higher highs, the fact that prices are trending above the ascending wedge is important.
That can constitute a solid ground for buyers to initiate long positions with stops at $200 but we first need confirmation of this breakout and that is why $225 or $230 (February 26 highs) is a good trigger line for buyers.
A quick glance at the 4HR chart and its evident that NEO prices are in range mode and near the support trend line clear in the daily chart.
In my view I will only recommend long or shorts when I see prices trending above $140 or below $100. Before then, I will remain neutral.
All Bitfinex, Bittrex and CoinBase charts courtesy of Trading View