Market Reversal On Alts
Hello All,
I wanted to post this chart on the alt market, I have posted anything in a while but this seems important to me. In my previous analysis for the alt market, I was looking for a double bottom, however, this is all I think we will be getting as the downward momentum is weak right now. The weakness of the downward movement is supported by the fact that this appears to be a falling wedge. This falling wedge is seen in light blue, in addition, price is against the upper trendline of this wedge. It seems as if this trendline will be broken, because (boxed in yellow) there is a high volume hammer along side an inside candle spinning top which makes it a strong possibility of reversal. Thus, I believe that price will follow the light blue arrow which I have drawn, this arrow is a representation of movement toward the previous resistance area, a brake above it and the a retest of previous resistance from that point it could continue the uptrend or simply consolidate in that range. If price does not break though resistance area but breaks through the upper trendline, then it is highly possible that it will retest the upper trendline as support and consolidate in that region before moving up once again this is represented symbolically with the yellow arrow. If there is a rejection at the upper trendline, then it is likely that the price will simply drop to complete the apex of the wedge.
Best of Luck and stay technical.
Previous Analysis:
I wanted to post this chart on the alt market, I have posted anything in a while but this seems important to me. In my previous analysis for the alt market, I was looking for a double bottom, however, this is all I think we will be getting as the downward momentum is weak right now. The weakness of the downward movement is supported by the fact that this appears to be a falling wedge. This falling wedge is seen in light blue, in addition, price is against the upper trendline of this wedge. It seems as if this trendline will be broken, because (boxed in yellow) there is a high volume hammer along side an inside candle spinning top which makes it a strong possibility of reversal. Thus, I believe that price will follow the light blue arrow which I have drawn, this arrow is a representation of movement toward the previous resistance area, a brake above it and the a retest of previous resistance from that point it could continue the uptrend or simply consolidate in that range. If price does not break though resistance area but breaks through the upper trendline, then it is highly possible that it will retest the upper trendline as support and consolidate in that region before moving up once again this is represented symbolically with the yellow arrow. If there is a rejection at the upper trendline, then it is likely that the price will simply drop to complete the apex of the wedge.
Best of Luck and stay technical.
Previous Analysis:
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