Namecoin’s movement may have slowed down today, but the overall trend is still bearish.
Lets take a look at the H4 chart below (click to expand).
Of course, the most striking thing here is of course the downwards movement since the start of February. Apart from the 100 SMA red moving average, take a look at the middle Bollinger. We can see how it’s been following a pretty consistent down slope. The only time it reversed was actually on Monday the 17th, although that was a fairly short lived affair.
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I’ve done a Fibonacci study from the high on the 11th at 4.68 to the low on the 14th at 3.12. Since then, price headed up to the 61.8% Fib level before retreating back to the 23.6% Fib level. Right now it’s hovering at the 38.2% Fib level.
So what does all this mean? Not much I’m afraid. Despite the fact that both the Accelerator Oscillator and the Awesome Osillator are red, plus the Stochastics are heading down, the volume simply isn’t there for yet another push down. Not right now anyway.
For the remainder of the week, I can see price simply bouncing between 3.7 and 3.5.
Analysis provided by Ashton Fraser, learn more about his trading strategies at Forex Reversal.