Analysis provided by Ashton Fraser, learn more about his Forex Reversals trading strategies.
Namecoin has been falling since Tuesday, but some bullish buds from early this morning are now blossoming, although the flower may wither away very soon.
Let’s take a closer look at the NMC/USD chart below on the H4 timeframe (click to expand):
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I’ve performed the Fibonacci study from this month’s high at 4.15 on the 4th of March, to yesterday’s low at 3.3.
We can see how smooth the downtrend was by way of the Awesome Oscillator, which had been bearish for multiple candles, actually since the 5th until this morning, (marked with an orange arrow), without any interruption.
However, those bears soon became exhausted; we could tell this because of the few consecutive candles circled in white, having very small bodies. Following that, the candle marked with a green oval, was the telling one that a reversal was on the way, with the Stochastics oversold, just having crossed upwards, and both the Accelerator Oscillator and Awesome Oscillator having turned green.
There is some resistance which may prove a stumbling block, in the 23.6% Fib retracement level, circled in red. You can see how price has already bounced off that level very recently. This, in conjunction with the fact that the overall long term trend is still bearish, leads to me opine that price will probably stay between 3.3 and 3.5 for the rest of the day.