Question is: will altcoins continue charting its way up now that buyers are picking prices from key support levels? In my opinion, it looks likely but I’m a little bit skeptical about NEO bull pressure.
Mind you, this token was resilient and didn’t full go to the dregs like the rest. In fact, all things equal, the recovery has been swift insinuating buy pressure but I cannot recommend buys unless I see a strong reaction above $140.
Let’s have a look at these charts:
Prices are still oscillating within February 18 bear candlestick and from the chart, we notice that Lumens is actually facing a little bit of sell pressure.
Even though we still are optimistic that prices may continue moving higher in the coming sessions, the only trigger for further bear pressure is if sellers push prices below the middle BB towards $0.30.
At the moment, the lack of price pressure is causing Lumens prices to consolidate along the 20 period MA in 4HR chart. Apart from this, this slow down of momentum is causing the bands to converge leading to that BB squeeze which as history shows often leads to a break out.
Overly, we still hold on to our bullish forecast and any break above $0.50 will signal trend continuation and 3rd phase of a bullish break out pattern in the 4HR chart.
Even after that bullish breakout on February 14, IOTA bulls cannot talk of considerable capital gains over the last 4-5 days.
Fact is we are seeing these swings between the main support at the middle BB and at $2.2-which by the way remains our bona fide resistance level unless we see a surge above it today. After all, yesterday was largely bullish with buyers driving prices to February 17 highs.
From our analysis, buyers are still in charge and every low as we said remains a trampoline towards swing traders’ targets at $2.2.
Look at how EOS bears react at around $9.5. That’s just around the middle BB and an area of interest in our analysis. As we have been saying, as long as buyers sustain prices above $9.5, there is no need of alarm because we shall maintain our positive skew and buy on dips.
However, and this is important, if there is a follow through and bears drive prices below February 18 lows, then we expect EOS to dip to as low as $8.
This is when we shall move to the 4HR chart, check the stochastics and buy when a buy signal prints. Else, conservatives should wait for a close above last week’s highs of $10 and $11.5 as they trade as per yesterday’s recommendation.
In line with our positivity from yesterday’s view, we shall first of all maintain our skew and trade as per that Morning Star pattern reversing right from the middle BB and $100 in the weekly chart.
Secondly, since we are cognizant of that bullish break out pattern, we shall be taking every bull back from key support lines from last week’s high lows.
We must acknowledge the strong LTC buy reaction after week ending February 11 and this case, even though prices are kind of slowing down and printing that bull flag in the 4HR chart, buyers should practice patience and wait for a decisive close above $240 before trading.
If not, any break below $210 and we can as well wait for bullish build up at around $180-$180 in the coming sessions.
Prices are pretty much stuck within February 18 trade range. When we compare NEO price action in the 4HR chart, we note that there is a clear double top where buyers are testing.
The thing is, prices are above $130 and as per our previous recommendations, we shall retain a positive outlook and look to spread out long entries between $110 and $130 assuming there is a retrace.
I recommend buys with stops below $115 as visible in the daily chart.
All charts courtesy of Trading View
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