XMRUSD - Technical Analysis October 3, 2017 - Current Price $90

XMRUSD

In a previous analysis we made note of some important levels to watch and take a position if the price were to show us real progression or regression. XMRUSD was forming a descending wedge, typically bullish pattern. It has since fleshed out a little more. This is also a bull flag - though i know it looks atypical.

daily

On the daily time frame, we have redrawn the wedge. This is an example of why taking a bullish position inside the wedge was a risk trade as it lost those critical support levels and never went anywhere significant for the bulls to profit.

With the RSI still in neutral and the stochastic RSI still in down trend, we are seeing solid signs of life in the candlestick pattern for today, currently a bullish doji which typically is indicative of a trend shift. There is still time in the day, a hammer candlestick would be even better as the doji typically indicates indecision as much as the start of a reversal.

Todays candlestick caught support at the 68ema and bounce quite sharply. Bulls would like now to take back the 30ema and consolidate or breakout of the wedge entirely on volume.

4 hour

The 4 hour chart is showing us the test of the lower trendline which was confirmed by the follow up candlestick. The stochastic RSI is just entering downtrend, and so this may take some time to play out. Bulls need to hang onto this trendline.

1 hour

The 1 hour time frame is looking good as the stochastic RSI pushes back towards uptrend. Notice our trendline support was tested twice here, each candlestick wicking off of the line - buyers.

If the price can keep pushing a bullish MACD cross can drive us through the moving averages and up for a test of the trendline resistance. Ideally for bulls we break it and make a move for a test of the daily pivot - $108.

$100 is a psychological resistance and will be difficult to break and hold.

Bullish Above: $97. Very bullish above $108

Bearish Below: $87

RISK TRADE: enter into a long position here. set a stop loss just below trendline or a % within your comfort zone.

don't forget to set stop losses!

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Follow at your own risk, Not a financial adviser, understand the risks associated with trading and investing. Manage your own Risk - in other words you could lose it all and it is your own fault