NMC/USD Technical Analysis – 30th April 2014

Namecoin has followed a predictable path today, if that's ever possible with digital currencies. The bears of the past two weeks have finally surrendered to the bulls, and there could be more to come.

Yesterday, I posted the following NMC/USD chart below:

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"The new blue Fibs represent where price may now retrace to. I feel, given that the Accelerator Oscillator has just turned green, whilst the Stochastics approach oversold levels, we may well see a testing of the blue 23.6% Fib retracement level this week."

If we take a look at the latest Daily chart on NMC/USD, where I've applied the same Fibonacci study, i.e. from the high of the month on the 15th at 3.35, until the low of this week on the 28th at 1.84...

...we can see how price has followed the path to where I was confident it would reach, i.e. the 23.6% Fibonacci retracement level at 2.2. What's amazing is the fact that today's candle possesses no lower wick at all, surprising, especially since the previous two were a couple of spinning top and dojis.

Also, it's interesting to note the trajectory of the middle Bollinger line, despite the strong downtrend from the middle of the month, it is still heading up, thus proving what a powerful hike the previous upsurge was. But take a look at the Stochastic Oscillator, it is approaching oversold levels, plus we have the Accelerator as green for a second day.

If today's candle closes above the 23.6% Fib, I believe we'll see a further retrace to the 38.2% Fib level tomorrow or Friday.