PPC/USD Technical Analysis – 26th Feb 2014

Analysis provided by Ashton Fraser, learn more about his Forex Reversals trading strategies. Peercoin made significant gains over the past

Analysis provided by Ashton Fraser, learn more about his Forex Reversals trading strategies.

Peercoin made significant gains over the past 24 hours, but may have already reached it’s high for today.

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Let’s take a look at the H1 chart below on PPC/USD (click to expand).

ppcusdh1_26_02_2014

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The first thing that strikes us glaringly is the clear uptrend we’ve seen starting yesterday.

Look at the bottom two indicators on the chart. It’s quite rare to see such a smooth elevation of Stochastics, in addition to an uninterrupted sequence of bullish Awesome Oscillator bars (both marked with white arrows). This is a clear sign of not only the strength of the trend, but it’s actual momentum.

However, we can now see that price has stalled for the past couple of candles. And there is good reason for this stalling. Look at how overbought the Stochastics (10,6,6) currently are, whilst now just crossing over bearing slightly south. In addition, the Accelerator Oscillator has turned red since a few hours. These indicators tell us that whilst there’s definite consolidation, the market could be gearing up for a reversal very soon.

Now, having done the Fib study from yesterday’s swing low at 2.71 until today’s high at 3.67, then for me, the only issue is the 23.6% Fib retracement level, where price is currently at (3.45). If price breaks this level, and we see a change of colour on the Awesome Oscillator to red at the closing of the next candle at 11am GMT, then this would quite possibly signify a reversal, in which case expect Peercoin to hit the 38.2% Fib level later today.

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