Analysis provided by Ashton Fraser, learn more about his Forex Reversals trading strategies.
Peercoin has been ranging all day today, with a squeeze slowly forming.
Let’s take a closer look at the PPC/USD thirty minute chart below (click to expand):
I’ve done the Fibonacci study from the low on the 25th at 2.7, to yesterday’s high at 3.67.
World's Biggest Vessel Opens Gates for 2019 Coinsbank Blockchain CruiseGo to article >>
Immediately we notice how, from the high of 3.67, price descended upon the 38.2% Fib retracement level, where it was tested on a few consecutive candles, circled in blue, at around 3.30, which can also be regarded at a psychological number of mild importance.
Also of note, is at that very point where price hit the Fib support, price was also below the lower Bollinger band, and with the Stochastics becoming oversold, and the Accelerator Oscillator turning green, a reversal pattern was quite ripe indeed.
Since that small reversal however, we’ve seen price sticking to the 23.6% Fib level like glue, going up and under it like a sine wave. I anticipate this wave to continue for the next few hours.
I wouldn’t be surprised if the Bollinger bands became even tighter by the end of the day, and if this happens, then we can expect some major movement next week.
There is some resistance at around 3.6 on the H4 chart however, which could be hit very soon, and if so, I would expect a bounce to 38.2% Fib level at 3.3.