Analysis provided by Ashton Fraser, learn more about his trading strategies with the Forex Reversal Indicator.
After literally being stuck to the 61.8% Fibonacci retracement level from the 14th of March until early yesterday, Peercoin finally broke through before reaching another key landmark.
Let’s take a closer look at the PPC/USD hourly chart below (click to expand):
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I’ve performed the Fibonacci study from the low of March on the 3rd at 2.79, until the high of March on the 4th at 3.89.
I’ve marked with a white ellipse the area where price was glued to the 61.8% Fib level for at least a couple of days. However, the bears were simply taking a breather, as there was now some decent resistance which I talked about in my last Peercoin analysis. That resistance has continued, as can be seen below:
This trendline gave price the impetus to push further down. Right now however, price is residing at 78.6%, and which could prove to be another sticky point, especially given the fact that the Accelerator Oscillator is now green and the Stochastics are in oversold territory. However, given the strength of the bears, 78.6% may give way sooner rather than later.
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