NMC/USD Technical Analysis – 29th April 2014

Namecoin fell to a two week low of 1.84 yesterday, only to recover a little over the past 36 hours, residing at around 2.1 right now, which as we shall see below, is an existing support/resistance line.

I want to rewind a few days to remind ourselves of what the market was doing over the weekend. This was the chart I posted:

I explained that,

"It seems the bears have regained control for the time being, and I fully expect, for there to be another test of the 61.8% Fib – later this afternoon in all likelihood, since we have a number of corroborating technicals."

This alignment of bearish technicals was actually enough for price to push even below 61.8% at 2.1, almost testing 78.6% at just above 1.8, as we can see by way of the latest NMC/USD D1 chart below (click to expand):

You'll notice I've performed two separate Fibonacci studies here on the same chart, a bullish study (in yellow) and a bearish study (in blue). The yellow Fibs are there from the original chart, but the new blue Fibs represent where price may now retrace to. I feel, given that the Accelerator Oscillator has just turned green, whilst the Stochastics approach oversold levels, we may well see a testing of the blue 23.6% Fib retracement level this week.