Monday, 29 July 2019

ONT (Ontology) Price Prediction: Moving averages make it hard to advance

Ont chart
NEO Chart

ONT faces strong resistance from the 20-day EMA. Also, ONT is trading below all the moving averages which shows the bears have the power at least in the short term. ONT has corrected close to 78.6% of the entire rally from the low of $0.40 to $2.17 and this is also a negative sign. 

 Although ONT has rebounded from the uptrend line,  the 20-day EMA needs to be scaled to resume the uptrend. If ONT remains under the 20-day EMA, a retest of the uptrend line is more likely to happen again. It is very important support, if it is successfully broken down, a retest of the recent lows of $0.40 will be in the cards.  

 There are not any reliable buy setups, thus, traders shouldn't open any fresh positions at the current situation.

Sunday, 28 July 2019

Ethereum Price Prediction: Eyes on $190 level

ethereum analysis

In our last analysis ,we expected a retest of the uptrend line and that's what happened. However, the rebounded from the trend line wasn't strong enough to scale above the major resistances. This shows that the bears seize any opportunity to sell on higher levels. 

Ethereum has corrected close to 61.8% of the entire rally from the low of $80 to $363. This level acted as strong support before, it's around $190. If Ethereum plummets and closes below $190, it can fall to $140 level.

ethereum chart

On the upside, Ethereum needs to scale above the 20-day EMA  to resume the uptrend. As long as Ethereum is trading below the moving averages, traders should patiently wait before opening any fresh positions.

Saturday, 27 July 2019

Moving Averages Trading Strategy

Moving Averages Crossover CHART
Moving Averages Crossover

We can use Moving Averages in numerous trading strategies but in this article, we will focus on A crossover strategy.

This strategy works when the market is trending, but if the market is choppy or moving in sideways,this strategy may provide false signals.

In this strategy, we use 5-day EMA with the 20-day EMA crossover. You can test different EMAs length or time frames to see which works best for you.

 To eliminate false breakouts, we should use another tool as a support of our view. In our strategy, we will use the Volume as a confirmation tool.

We open long positions when 5-day EMA crosses above the 20-day EMA accompanied by high volume. We open shorts when 5-day EMA crosses below the 20-day EMA accompanied by high volume.

Let's take an example, below is a daily chart of Gold, as you can see the 5-day EMA crosses above the 20-day EMA. Notice how the volume increasing after the breakout, thus, we take it as a confirmation to open a long position.

After this breakout Gold made a significant profit.

Moving Averages Crossover2

Let's take another example which gave us two signals. This is ETHUSD daily chart. Firstly, the 5-day EMA crosses above the 20-day EMA accompanied by huge volume which validates our buying position. After the breakout, Ethereum rose more than 50%.

The second signal came when 5-day EMA crosses below the 20-day EMA, also the volume increases compared to the previous days, thus, we opened a short position with confidence. Ethereum declined from $280 to around $200 after the breakout.
Moving Averages Crossover eth

Now, let's take an example of false signals. Below is a daily chart of EOSUSD. As shown from the chart in the late of April, 5-day EMA crosses below the 20-day EMA, however, the volume was weak which doesn't support a bearish view. Look carefully how the volume goes up each time 5-day EMA is above the 20-day EMA, which indicates the bullish view is still strong.

Moving Averages Crossover eos
Even if we can make some profit using this strategy during a sideways market, but we don't recommend trading it to avoid false breakouts.

Moving Averages Crossover xau


Tuesday, 23 July 2019

Ethereum Price Analysis: Bears pushes ETH down

In the daily chart of Ethereum, the uptrend line provided support on JULY 16. This is long term support for Ethereum.

 However, numerous elements that concern us. All the moving averages show a bearish view and there is a death cross between the 50-day SMA and the 20-day EMA . Also, RSI is in a downtrend condition.

With all these conditions a retest of the uptrend line is more likely to happen again.

 Traders should keep a positive view as long as Ethereum stays above the uptrend line.

In the 1H chart below, Ethereum is trading in a downtrend channel which confirms the bearish outlook in short-term. Day traders may use the lower line  of the channel as a buying opportunity and the upper line as taking profit.

Ethereum H1

Friday, 19 July 2019

Bulls defend NEO

After a sharp decline NEO has rebounded from the uptrend line, which shows that the bulls are ready to defend this important support. The pullback from the uptrend line witnessed a strong resistance from both the 100-day and 200-day EMA. They are nearly at the same level.

If the bulls scale above the moving averages, NEO may rise towards next resistance zone between $14.50 and $15 level.

However, if NEO/USD turns down from this strong resistance, it will find support from the uptrend line. 

If the price plummets below the uptrend line, it will show a change in  trend. As long as the price sustains above the trend line, NEO will keep the bullish view alive.

Since NEO is trading at a resistance level , traders should wait to buy at supports.

neo chart

Wednesday, 17 July 2019

NEO fights recovery

Like other Cryptos NEO/USD has declined more than 50%  since June 26. It fell below the moving averages. The pair is trading now at $11 just above the 200-day SMA. The first resistance can be seen at $11.35, it's the 61.8 Fibonacci retracement level.

An upside break up can trigger rise towards next resistance at $13.19.

On the other hand, if NEO/USD slips below the 200-day SMA, it may plummet to $8.75 support level. RSI is close to oversold territory which shows that the power of the bears.

neo daily chart

Tuesday, 16 July 2019

Bitcoin: Struggles to clear resistance

Bitcoin broke below the upper line of the ascending channel on July 14. But as expected from the last analysis it found support from the 50-day SMA. The pair bounced off the 50-day SMA and rose to test $11,000 level. 

However, Bitcoin faced stiff resistance from both the 20-day EMA and the trend line. If it fails to clear them up, it may correct down to the 50-day SMA and then the lower line of the ascending channel. 

The RSI is under 50 and in a downtrend condition which shows the bulls is losing power. There isn't any clear buying setup at the current conditions, hence, traders should wait to buy at supports or if Bitcoin goes above the 20-day EMA.


Sunday, 14 July 2019

WTI Price Forecast: Bulls have the upper hand

The main trend is still bullish in the daily chart. WTI crude oil is trading above the major moving averages. Also, RSI at 60 which indicates the bull have the upper hand and Parabolic SAR confirms the bullishness.

On the other hand, USOIL could not clear the $60.85 level in the last two sessions last week. It's a Fibonacci retracement level . If USOIL manages to penetrate it a move to the next resistance at $63.77 is expected.

In the way down WTI will find supports from the trend line and then from $57.35 level. Since the trend is up these two supports areas may attract the bulls to come. WTI will turn negative if it sinks  and close below $56.06 level.

usoil chart

Friday, 12 July 2019

Bitcoin Price Predication : BTC is trading above the ascending channel

On the daily chart of Bitcoin, the upper line of the ascending channel has provided great support for  Bitcoin dips since 27th June. Bitcoin has bounced from it numerous time. It actually acts as the first defence wall for BTC, hence, it gives us great trading opportunities. As long as the price sustains above the ascending channel, the bulls will try to test the recent highs at 13,900 However, if Bitcoin breaks it down it will find support from the 50-day SMA and then the lower line of the ascending channel.


Traders should be patient and wait to buy on supports mentioned above. Levels to watch for short term is 11,800( it's the 23.6 Fibonacci level) then 12,500. RSI is at 55 which shows a consolidation for the next few days.

 BTC/USD will only turn negative if it slips below the ascending channel.