Analysis provided by Ashton Fraser, learn more about his trading strategies at Forex Reversal.
Peercoin seems to be adhering to classic technicals this afternoon.
Lets take a look at the intraday thirty minute chart below on PPC/USD (click to expand).
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Look at how smooth the downtrend was from the 20th at 4.050 until this morning at 3.3. You can tell it’s very smooth by looking at how price was literally contained between the middle and lower Bollinger bands for the whole duration of the trend.
However, it became clear that the bears could soon be exhausted. Look at how the 10,6,6 Stochastics crossed upwards whilst being oversold/underbought. Then within the next hour, both the Accelerator Oscillator and the Awesome Oscillator turned green.
Subsequently, price rose all the way to the 50% Fib retracement level, where it actually closed above the upper Bollinger line. Immediately, the AC turned red and price fell down back to 38.2% Fib level.
I don’t expect price to rise much further today, most likely there will be some hovering between 3.75 and 3.45.