Analysis provided by Ashton Fraser, learn more about his trading strategies with the Forex Reversal indicator.
Namecoin vs Bitcoin has been falling since the morning of the 5th of this month, but we may be in the midst of a retrace formation.
As I mentioned in yesterday’s analysis of NMC/BTC, I was of the opinion that price was going to be supported, by a number of various factors, including the certain Fib levels and later on a supporting trendline. Indeed, support has held firm so far.
Let’s take a closer look at the NMC/BTC H4 chart below (click to expand):
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For today’s Fibonacci study, because I expect price is going to retrace up sooner rather than later, I’ve performed it from the high on the 5th of March at 0.0059 until today’s low at 0.00535.
Immediately it’s clear what I’m targeting, namely (pardon the pun), a retrace to the 23.6% Fibonacci level at 0.0055.
We have the Awesome Oscillator as green, like wise the Accelerator Oscillator, and the Stochastic has just crossed upwards, whilst far from being overbought.
My only concern is for price to reach 23.6% fairly soon, it’s going to have to exceed the upper Bollinger band, so it may take a few candles for the retrace to be complete, but I do expect it to happen by tomorrow at the latest.
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