Peercoin once again tests the year low, for the third time in as many days, further strengthening the support at 2.607, as shown by the PPC/USD four hour chart below (click to expand):
I mentioned in my last Peercoin technical analysis at the end of last week how PPC/USD’s low of 2014 was becoming an increasingly powerful support line, “This is a very important area… As a general rule, a yearly high/low is a very strong area of support and resistance.”
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And yesterday, PPC/USD tested that low again, bouncing up to an important Fib line. We can see this more noticeably, if we zoom into the hourly chart to get a clearer picture of upcoming short term technicals. It becomes obvious what the market is doing right now (click to expand H1 chart):
I’ve performed the Fibonacci study from the high of last week at 2.930, until the low of 2014 at 2.607. We can see how since yesterday, price has been meandering between the year’s low and the 23.6% Fibonacci retracement level at 2.683. Look at how many times in less than 24 hours price has tested 23.6% (marked in red).
For the rest of the day, I anticipate this sine wave to continue, since we have conflicting technicals. It’s almost impossible the low will be broken today, as the support is extremely strong. The only line that could be broken is 23.6%, but with the Accelerator Oscillator just having turned red, it’s unlikely that will happen either, especially within the next few candles.