Analysis provided by Ashton Fraser, learn more about his trading strategies at Forex Reversal.
As we’ve seen in a previous technical analysis of Peercoin, it’s clear that the downwards trendline is indeed very strong, just as expected.
Take a look at the PPC/USD H4 chart below (click to expand)
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We can see how after multiple tests by the bulls on the white trendline over the past few days, price just wasn’t able to break. Indeed, the Bollinger Squeeze also produced a pretty clear conclusion – that price was going to snap out of the squeeze very soon, and that direction was most likely going to be south, mainly because of the strength of the resistance that trendline was providing.
Looking further at the hourly chart below (click to expand) and doing a Fibonacci study…
…then we can see how price has come back up to the 23.6% Fib retracement level, and in fact both the Accelerator Oscillator and the Awesome Oscillator have both turned green. I’m anticipating a further such hovering around this level, perhaps even touching the 38.2% Fib level, although I expect the overall bears still to hold their strength until the end of the week.