NMC/BTC Technical Analysis – 4th March 2014

Tuesday, 04/03/2014 | 15:42 GMT by Ashton Fraser
NMC/BTC Technical Analysis – 4th March 2014

Analysis provided by Ashton Fraser, learn more about his Forex Reversals trading strategies.

As I discussed in my analysis last week, Namecoin vs Bitcoin had been pretty much static for a number of hours, as there was a support line which was offering some hindrance. Indeed, that support held strong for the following few days, as it was also a psychological number, but, as I explained, price was always likely to fall, due to the bearish indications on higher timeframes.

And fall it did. Throughout yesterday, price fell like a rock, barely caring for any retraces. Take a look at the NMC/BTC hourly chart below:

I’ve done the Fibonacci study from last week’s median high, at the aforementioned 0.006, until yesterday’s low at 0.00525.

And concerning that very candle which produced the low of 0.00525, it’s perfectly placed for a potential reversal. You’ll notice how the entire body of the candle opened and closed below the lower Bollinger line. In addition, both of its wicks are extremely long, it’s almost a doji candle. Dojis are great candles to look out for when seeking any possible reversals. Also, we had the Stochastic Oscillator just about crossing over, whilst being underbought/oversold.

In the following few candles, both the Awesome and Accelerator Oscillators turned bullish, further fuelling the reversal. Price then hit the 61.8% Fib retracement level (circled in red) to the pip at exactly 0.00572 before coming down to the 38.2% Fib level (circled in blue), and then pushing up again – this time beyond the day’s high at the time at 61.8%.

If we zoom out and take a look at the H4 chart, we’ll yet another major reason for the reversal at 0.00525, namely a strong trendline:

This, with all the above technicals I’ve mentioned, meant that a retrace was very likely indeed.

Right now price is around 0.00585, but with the AC having turned red a couple of candles ago on the hourly, price will probably come down to the 61.8% Fib level, before rising yet again, due to the current strength of the Awesome and Stochastics still looking bullish without being in overbought territory.

Analysis provided by Ashton Fraser, learn more about his Forex Reversals trading strategies.

As I discussed in my analysis last week, Namecoin vs Bitcoin had been pretty much static for a number of hours, as there was a support line which was offering some hindrance. Indeed, that support held strong for the following few days, as it was also a psychological number, but, as I explained, price was always likely to fall, due to the bearish indications on higher timeframes.

And fall it did. Throughout yesterday, price fell like a rock, barely caring for any retraces. Take a look at the NMC/BTC hourly chart below:

I’ve done the Fibonacci study from last week’s median high, at the aforementioned 0.006, until yesterday’s low at 0.00525.

And concerning that very candle which produced the low of 0.00525, it’s perfectly placed for a potential reversal. You’ll notice how the entire body of the candle opened and closed below the lower Bollinger line. In addition, both of its wicks are extremely long, it’s almost a doji candle. Dojis are great candles to look out for when seeking any possible reversals. Also, we had the Stochastic Oscillator just about crossing over, whilst being underbought/oversold.

In the following few candles, both the Awesome and Accelerator Oscillators turned bullish, further fuelling the reversal. Price then hit the 61.8% Fib retracement level (circled in red) to the pip at exactly 0.00572 before coming down to the 38.2% Fib level (circled in blue), and then pushing up again – this time beyond the day’s high at the time at 61.8%.

If we zoom out and take a look at the H4 chart, we’ll yet another major reason for the reversal at 0.00525, namely a strong trendline:

This, with all the above technicals I’ve mentioned, meant that a retrace was very likely indeed.

Right now price is around 0.00585, but with the AC having turned red a couple of candles ago on the hourly, price will probably come down to the 61.8% Fib level, before rising yet again, due to the current strength of the Awesome and Stochastics still looking bullish without being in overbought territory.

About the Author: Ashton Fraser
Ashton Fraser
  • 290 Articles
About the Author: Ashton Fraser
  • 290 Articles

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