Analysis provided by Ashton Fraser, learn more about his trading strategies with the Forex Reversal Indicator.
Namecoin has been falling this morning, and we still could see some further bears until a significant support level.
Let's take a bird's eye view at the NMC/USD hourly chart below:
I've performed the Fibonacci study from the year's low on the 25th of February at just above 2.6, to the month's high on the 4th of March, at 4.15. What sticks out like a sore thumb is how price has been gravitating towards the 50% level (around 3.38), for a number of days, as indicated by the white rectangle.
However, price is now starting to push down, the bears are overtaking the magnet that is 50%.
If we zoom into the H1 chart for a closer view, we'll see that certain technicals are in play which are causing price to head down (click on chart to expand):
As you can see, the Bollinger squeeze on the hourly has come to an end, initiated by a few indicators coinciding. We had the Stochastics crossing downwards, the Accelerator Oscillator turned red, as did the Awesome Oscillator. In fact, since that southern initiation, the Awesome indicator has been totally bearish, barring any interruption, a sign of a smooth downtrend.
However, with price now hovering below the lower Bollinger band, the Stochastics oversold, and the Accelerator turning green, I expect price to rise for a short time, before pushing back down to the 61.8% Fib level, which also happens to be 3.200, a psychological number, so definitely expect a bounce off this point if price does manage to reach it.
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