Altcoin Analysis: NEO, EOS, LTC, IOTA and Lumens
Of the 5 altcoins, it’s only NEO that is slow to pick up. Other pairs especially LTC and Lumens seem to be reversing from key support levels. If that is really the case then we expect higher highs today.
Given the technical formation, LTC remains on our radar and if there is any close above $225, buyers can enter and aim at $270 or high in the coming trading days.
Let’s have a look at these charts:
Even if positional traders cannot find reason for buying Lumens, swing traders and especially scalpers have reasons to especially if their focus are in the 4HR chart.
Yes, of course, the former cannot buy until we have a convincing blast above $0.38 but technically, it looks like there are enough reasons for short term traders to enter longs.
First, notice the strong rejection of lower lows right at $0.30 which as we know is a strong support as per our analysis.
Then secondly, relative to price action, there is a stochastics bullish divergence pattern. Buyers can actually wait for a strong break and close above that minor resistance trend line and the middle BB in the 4HR chart before going long.
If not-since we are in the 3rd phase of a bullish break out pattern, buyers can further fine tune entries in lower time frames and buy on dips.
As per March 1 Analysis, the effect of the 4HR middle BB and $1.87 is clear. From the chart we can see the reaction and how $1.87 became a perfect spring board for IOTA prices.
So far, it remains likely that prices will inch higher and our first level of resistance $2.2 as our previous recommendation.
That’s also where our first TP is at. Possible spoilers might happen if this momentum slows down and sellers drive prices back below the middle BB in today’s sessions.
Even though that looks unlikely, we can never be sure of everything and this is why I recommend stops below yesterday’s lows of $1.87.
See that double bar reversal pattern right at support-i.e., the middle BB? That’s a simple confirmation that even though prices might be all over the chart, the trend is still bullish.
Technically, we are trading a bullish break out pattern and as such we cannot ignore the influence of the middle BB and $8. Therefore, relative to what is going on here, every retest of $8 and support is a buying opportunity.
Remember, this is the trend resumption phase of a larger-depends on how you look-bullish break out pattern that begun sometimes in late February.
In my view, I really think swing traders can buy as long as prices are above the main divider-the bullish break out line which was tested on February 26.
The reaction at $200 has been sweet and in line with our LTC trade plan. But really, this might be another selling opportunity as sellers gain momentum.
This is why I will need confirmation of yesterday’s bullish bounce off the middle BB today.
It will be imperative for buyers to drive prices above $225 or higher for this recovery to have that approval stamp. After that then, positional traders can enter and place tight stops at $200 or lower.
Yesterday’s bear pressure is surely a confirmation of previous bear candlestick. In my view, every dip is a discount for NEO bulls and it will be perfect especially if prices drop further say to $120 and the main support trend line in the daily chart.
That’s unless of course we have a spike above $130, that’s when we can resume buying.
Otherwise, at the moment, NEO prices are still trending above the middle BB and the support trend line. That is important in light of our analysis.
I even recommend buying now and placing stops at $115-a level slightly below the support trend line.
All CoinBase, Bitfinex and Bittrex charts made available courtesy of Trading View
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