Analysis provided by Ashton Fraser, learn more about his Forex Reversals trading strategies.
Peercoin seems to have hit some resistance this morning at around 3.2, by way of a confluence of reasons.
Lets take a look at the PPC/USD four hour chart below (click to expand):
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I’ve performed the Fibonacci study from March’s low at 2.79 until March’s high at 3.89.
Yesterday I explained on the H1 chart how price would probably reach the 78.6% Fib level, which it did, except since then however, there seems to be some stalling, which, looking at the H4 chart above, is pretty clear why.
Ever since the smooth downtrend from midweek last week (suggested by the virtually uninterrupted Awesome Oscillator, marked in orange), price has consolidated, retracing up to the 50% level, testing it twice (circled in red), and more recently, within the past twelve hours, we have the 61.8% Fib level at 3.21 acting as a strong resistance area, where it’s been tested three times within the past four candles, marked with a white ellipse.
The issue is, we’re now getting conflicting technicals, Stochastics and Bill William’s telling us different things. This conflict doesn’t necessitate confusion however. It just affirms what we already know, i.e. some ranging is in play. In addition, the fact that ALL three Bollinger lines are now horizontal, is a testament to this fact.
Therefore I expect 61.8% to hold for the rest of the day.