Analysis provided by Ashton Fraser, learn more about his trading strategies with the forex reversal indicator.
Yet again Peercoin tests the year low, for the fourth time in as many days. This is becoming a bit of a habit…
Let’s take a closer look at the PPC/USD chart on the H4 timeframe (click to expand):
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I’ve performed the Fibonacci study from the high of last week at 2.930, until the low of 2014 at just above 2.6 (2.605 to be precise). It seems 2.6 and the year low have a lot in common. Four tests in four days. But thou shall not pass is the response every time Peercoin even thinks about crossing that big red line.
I mentioned in yesterday’s Peercoin technical analysis on how powerful the support at the year low is, and it only continues to become more and more powerful, “It’s almost impossible the low will be broken today, as the support is extremely strong.”
Right now, price is hovering around the 23.6% Fib level at 2.67, which again, it’s failed to break, as I anticipated yesterday, “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.” Price has crossed above 23.6% on a few occasions since yesterday, but a true break refers to a close above the line, as opposed to merely a stick’s wick protruding over it.
However, I doubt it will be long before a closure above 23.6% finally occurs, because that year low of 2.6 is super strong, and it would take some serious bears to break it. Expect some continued ranging for today, with a possible rise to the 38.2% Fib level later this week.
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