Today, our altcoin analysis should be on Stellar Lumens inverted head and shoulder pattern and how buyers might be loading up their long positions.
It’s all on maybes especially now we know that the trend is bearish right from the top. Anyhow, if it continues this way, the recovery might see buyers testing the main resistance trend line and that is what many want. We are all dying for a recovery.
Encouragingly, Lumens is not alone. The same set up is visible in NEM, EOS, LTC and NEO. Is this a turn of new buy tide? Hope so, lets ee what the charts got for us.
NEM SELLERS FAILS TO CONFIRM MINOR SUPPORT TREND LINE BREAK OUT
Contrary to expectation, bears couldn’t follow through with yesterday’s minor break out. Against all odds, there was a slight appreciation as NEM buy pressure pushed prices back towards the minor break out trend line.
What is interesting though is that all this developments did happen within the break out candle. This beckons more questions than answers in the coming sessions.
Technically, we are in a bearish trend but momentum wise, buyers are likely to load up their longs. I this regard, we should be watching the reaction at the middle BB and $1.14 more so if NEM sellers fail to close below $0.83 today.
ALTCOIN ANALYSIS STELLAR LUMENS INVERTED HEAD AND SHOULD PATTERN
For more perspective, it won’t hurt if we analyse Lumens price action from two angles.
First, we must admit that confirmation of an inverted head and shoulder pattern after yesterday’s prices bounce off $0.43 neck line and that is what buyers want to see.
Now, relative to the secondary chart where we are seeing emergence of buy pressure, the questions we must ourselves is this: Will there be enough momentum for a close above the minor resistance trend line?
From all indicators, if Lumens prices keep oscillating above 38.2% Fibonacci levels, then it is likely that a new trend is in the covers.
NEO FINDING SUPPORT AT MIDDLE BB IN THE DAILY CHART
Yesterday’s NEO prices did dip but the depreciation was $10 shy off the main support line at around $94. There is a double bar bear reversal pattern and the onus is upon bears to confirm that depreciation this week.
In line with that expectation and buy pressure build up, two things can happen: Either, NEO buyers bounce off the middle BB-clear in the daily chart-with this current double bar bull reversal pattern at around the 78.6% acting as trampoline or sellers ease up and wait for better entries at the 38.2% marking $155.
However, decisions to buy or sell will lie on price action. From my analysis, I will readily dismiss sells propositions if NEO prices trend above $155.
LTC BUYERS LOADING UP POSITIONS
If we paste a Fibonacci retracement tool between recent highs and Q4 2017 lows, LTC prices are dangling right at the 61.8% level.
In our entry chart, it is clear that buyers are loading up their long positions. Evidently, there is a double bar reversal pattern and a buy stochastic signals complementing the potential move up.
Of course, I will need confirmation. Nothing will be more pleasing than prices closing above $210 and the middle BB in the daily chart.
If that happens, we can consider buying say at around $230. It will be timely because that is when prices are above the 50% retracement clear in the daily chart.
EOS DOUBLE BAR REVERSAL PATTERN AT MAIN SUPPORT
The reaction at $12 is encouraging and it after all, EOS buyers might end up maintaining the main buy trend.
Remember, there is a double bar bullish reversal pattern right at main support. Because of this, EOS buyers should aim at last week’s highs of $15 in the coming sessions.
All charts courtesy of Trading View