After a number of consecutive bear days, Namecoin vs Bitcoin manages to attain some reprieve, with the bulls allowing it to retrace a fair few pips.
During my last technical analysis on NMC/BTC, I contemplated, “So the key question is, is this southern trend going to continue?”
Whilst posting the following H4 chart:
Coming to the conclusion, “For the short term – it’s very likely we’ll see some bulls attempting to muster some strength… due to what I’m seeing on the H4 timeframe… we can see how right now, the Stochastics are beginning to creep upwards from an extremely oversold position, with the AC and AO just turning green.”
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So let us take a closer look at the latest NMC/BTC chart below, this time I’m zooming out to the Daily timeframe so we can draw longer term Fibs (click to expand):
I’ve performed the Fibonacci study from the high on the 16th of April at 0.00655 (which is the high of the past two months), until the current low on Monday at 0.0045.
I think the chart above does all the talking. Price has risen, testing the 23.6% Fibonacci retracement level 0.005, but it now seems set to break it. I’m talking about a true break, i.e. a candle closing above that level, as opposed to the upper wick merely exceeding it temporarily. Many of the indicators are now in alignment, including the Stochastics which are oversold and appear to be crossing over very soon; plus we have the Accelerator Oscillator AND the Awesome Oscillator as green.
Hence, if a break occurs today, which is likely, then expect price to increase to at least the 38.2% Fib by the weekend.