After 3 weeks, we’re capable of now conclude 3-bar bear reversal pattern is in play full with a bear pin bar marking value peaks. While at it, we must be keen and spot that value movement continues to be oscillating inside week ending December 24, 2017 candlestick whose extreme lows will proceed to behave as our fast time interval help and resistance.
From value movement prepare, it is seemingly that that help marked at spherical $250 will in all probability be hit sooner than Monero patrons bounce in and push prices larger. In my opinion, Monero prices are susceptible to be confined contained in the 1st and 2nd Fibonacci extension ranges inside the coming days and any break beneath help at spherical $250 could open the flood gates for bears angling for $160 or August 2017 highs.
If that happens, then patrons could possibly be assured of value movement retest of the middle BB-a primary help line and a retest of the first help line at $160 and any buy pressure signaled by a bullish candlestick could possibly be beckoning to patrons. However, sooner than that happens, let’s seek for promote indicators in lower time frames.
In the daily chart, bears broke beneath the middle BB on January 16 after that huge bearish engulfing candlestick.
In reality, value movement continues to be caught inside that candlestick’s extreme lows and its lows is the underside of the double bar reversal pattern that printed between January 16 and 19.
As talked about sooner than, if sellers get earlier $250, then we aim at $160 which might be the 78.6% Fibonacci retracement diploma inside the daily chart.
There is one factor explicit regarding the Fibonacci retracement and extension ranges and on this case we will apply it on the current value movement. Notice the place XMR bears picked up from? It is exactly on the 78.6% Fibonacci full with a 3-bar reversal pattern and an evening star.
Now, as reversals from such ranges dictate and evaluating it with historic prices, one of the most effective XMR sellers can muster is retest remaining week’s lows at $230.