Analysis provided by Ashton Fraser, learn more about his Forex Reversals trading strategies.
NMC vs BTC has been adhering to a strong horizontal support line. How long can this support last?
Let’s take a closer look at NMC/BTC via the hourly chart below (click to expand).
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We can see how there was a small, but definite bullish trend yesterday, (marked with a green arrow).
However, over the past few hours, price has consolidated, and there is one level that is holding major ground. Specifically, 0.00600, marked with the red horizontal line. This is a psychological round number, and just look at how many times price has hit that line, almost twenty times (marked with a blue ellipse). This makes it a very strong support indeed.
With the Stochastics now crossing over and the Accelerator Oscillator having turned green a few candles back, I would have expected that line to hold firm for the rest of today, was it not for the fact that on the higher timeframes there are some bearish indications.