Tuesday, 20 August 2019

Stellar Price Analysis: Traders Wait For a Positive Movement

Stellar is trading under the moving averages. XLM/USD hasn't been able to break above the 20-day EMA. You can see the chart and notice how 20-day EMA ( black line) forms a strong barrier for XLM to advance. Additionally, the pair has broken down $0.072 support level. Both $0.072 and 20-day EMA are nearly at the same level.

  The bulls needs to get the price above these two resistance to resume the uptrend. If they succeed, Stellar will move up to 50-day EMA, then to $0.093 level.

 If the price sustains below the critical support for a long time, it will be negative for Stellar. It's not recommended buying under resistance, therefore, traders should wait until a new buy setup appears.

XLM Chart Analysis

Sunday, 18 August 2019

ONT (Ontology) : RSI Shows Bullish Divergence

ONT plummeted under the uptrend line on Aug.15, it acted as strong support before, so it may behave as resistance now. The pair tried unsuccessfully to scale above the uptrend line in the last three days. Additionally, ONT/USD is trading under the moving averages.

However, the only positive thing now is that the bullish divergence on RSI which indicates a potential reversal in price soon. It must be noted that RSI divergence is misleading in some cases. Therefore, we need other bullish confirmation signals before we go long on ONT. The price must break up the trend line then scale above the 20-day EMA.

If the trend line shows strong resistance, we may see another dip to $0.69 then to $0.50.

ONT Price

Friday, 16 August 2019

NEO Signs Of Weakness

NEO has suffered lately from the general weakness of Cryptocurrencies. 

After repeated retests of the uptrend line, bears succeeded to drag the price below it. It is a bearish sign. Additionally, NEO is trading below the moving averages and RSI is in the negative zone. All of these show that sellers have the upper hand.

The next support to watch now is $9.18. On the other hand, if the price breaks down of $9.18, it may drop to $6.80.

Bulls need to push the pair above the uptrend line to start a recovery. You shouldn't buy a fresh position as long as the pair sustains below the uptrend line. As we recommended in the last analysis, traders should buy when price breaks up the 20-day EMA. 

NEO Analysis Chart

Litecoin Looks More Bearish Than Before

LTC Chart

Litecoin plummeted below the support of $76 and is trading under the moving averages. Most importantly, it completed a well-known reversal Head and Shoulders pattern when the price plunged below the neckline. These developments tell us that the worse is still to come.

In this pattern, it's common that price retests the neckline before continuing its course down again. To neglect this pattern, the price must go above the neckline again. 

If LTC struggles to break above the neckline, bears will seize the opportunity to push the price lower.  

The next support levels are $70 then $60.

To resume the uptrend, the pair should breakout both the neckline and 20-day EMA. 

LTC Analysis

Thursday, 15 August 2019

Ethereum Price Analysis: Ethereum Struggles to Recover



As the sentiment in the whole Cryptocurrency is weak at least in a short term, Ethereum couldn't scale above the moving averages. Both the 50-day EMA and 20-day EMA make it hard for ETH/USD to advance. Moreover, Ethereum lost the battle with moving averages and breaks down the uptrend line 1 and $190 level. It's a 61.8% Fibonacci level of the rally from $80 to $363.

The price has tested and rebounded from the main uptrend line, it's the main and only major support for Ethereum, but if that support also breaks down, the fall can extend to $150 level.

RSI confirms the weakness of the bulls. The trend line 1 and the 20-day EMA are at the same level,therefore, traders should expect  strong resistance from them.

Traders should be on the sideline at the moment until a clear buy setup appears.

Bitcoin Price Analysis : Bears Take Profits


Image by mohamed Hassan from Pixabay


Bitcoin Price Outlook

 After the failure of the bulls to penetrate the downtrend line, BTC/USD has fallen hard in the last couple of days. The downtrend line is the best place for the bears to take profits. The pair dipped below the 50-day EMA moving average and the ascending channel which shows the weakness of the bulls in the short term.


BTC Price Chart


However, BTC  has bounced back today from the 100-day EMA, below it the $9080 level will act as a strong support. Traders should defend this support strongly. If it breaks down of $9080 level, Bitcoin may fall to $7455 level and it will turn negative.


Any recovery attempt from the bulls will face resistance from the moving averages and the lower line of the ascending channel.Also, the zone between $10,000 and 10,450 will be a critical place for the bulls if they want to resume the uptrend movement.


Saturday, 10 August 2019

Exit Strategies to Protect your Capital

Exit Strategy is a very important approach for any trader who wants to keep his capital from disappearing. Any successful trader can lose, but what differentiate successful traders than others is how much loss can they accept. They cut their loss short. Traders must avoid catastrophic losses by all means, and they can achieve this by using Exit Strategy.

Exit Strategy is also important for traders who are in profits and don't want to turn their profits into loss by choosing the right time to get out of the trade.

There are several Exit Strategies out there, but we will focus on three kinds in our article.

1. Moving Averages 

In this strategy, we use 20-day EMA with 50-day EMA. You can also use it with different EMAs length or time frames to see which best for you.

 The strategy is so simple, we exit our trade when 20-day EMA crosses under 50-day EMA. As a confirmation, you can wait for the price to retest the 50-day EMA and bounce back off it.

In the ETH/USD chart below, 20-day EMA crosses under 50-day EMA, this is the first signal of a trend reversal, so we waited for the price to touch back the 50-day EMA as a confirmation and exit our trade. Traders may also take this signal to open short positions.

  After we closed the trade, Ethereum has declined sharply.

Exit Strategy Gols chart
Let's take another example, below is the GOLD daily chart. As you can see 20-day EMA crosses under 50-day EMA. Also, the price touched back the 50-day EMA. Therefore, we exited our trade.

After we exited the trade, Gold fell more than 10%.

2. Head and Shoulders

Head and shoulders is a well-known reversal pattern. When spotted in charts traders expect a reversal in price is more likely to happen. You can see them on all charts length. It consists of a head ,two shoulders and a neckline as shown in the chart below. To validate the pattern, price must break down the neckline.

The exit point should be placed below the neckline. In some cases, the price may retest the neckline before it resumes its way down. Thus, retests of the neckline may be taken as a confirmation to exit any open positions. 

In HT/USD daily chart below, the Head and Shoulders pattern is  spotted in the chart, so we placed our exit point just below the neckline.

After we closed our open position, HT/USD plummeted from $4 to $1.50.

Exit Strategy HTUSD  Chart

3. Trend Line 

  When a major trend line is broken, it is a signal of a trend reversal. We should exit once the trend line is broken. Usually, the price retests the trend line before continuing the fall.

Below is USOIL daily chart, the price broke down the uptrend line, thus, we placed our exit point below the trend line.


Exit Strategy OIL Chart

  Now, let's use two exit strategies in one chart. I will use the same above chart for my example. I employ the trend line and moving averages strategies on the USOIL chart. Notice how amazingly the two strategies gave us the same exit point. We exited the trade with confidence.

After our exit, OIL dropped more than 20%. 

Exit Strategy Oil Chart