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Monday, August 24, 2020

A possible continuation of Cup and Handle Pattern or Double Top?

A possible continuation of Cup and Handle Pattern or Double Top?

iExec RLC / TetherUS BINANCE:RLCUSDT

NOTE: Not a Financial Advice to BUY/LONG Or SELL/SHORT
For Educational Purpose Only

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Hello Guys! Welcome to this second analysis on RLCUSDT . The first analysis (Related Ideas) is somehow failed to make a continuation to the upside. Remember also that this Cup and Handle is different because the pattern was made in a prolong bull run on this coin. Usually, Cup and Handle Pattern happens after a prolong downside and there is a change of a trend from downside to upside. Take note to pay attention on BTCUSD chart as its influence the price action on the ALTs. So, here is the chart:

snapshot

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Analysis:

On Daily Time frame,
Using the Fibonacci Retracement Tool. I identify the important areas of support (green box) & resistance (red box). Currently, the price was rejected by 0.382 Fib Level and the Purple Trend Line . In order for the price to continue higher, it must break the important Fibonacci Levels at 0.382 & 0.4141, 0.50, 0.618 & 0.65, 0.88 and 1.00. I think Fibonacci Levels at 0.382 & 0.4141, 0.50 and 0.618 & 0.65 is considered a very strong resistance to break. But the strongest Resistance is at 0.618 and 0.65 ( $ 1.86 & $ 1.89) Fib Level because of the previous price action on that level were it rejected the price a lot of times and many wicks for 5 days. It's not only break the purple trend line would confirm the trend. On the good side, we have a "Three White Soldier Candle" on that 3 days of consecutive price gains after a strong price rejection. Here, is the chart:
snapshot

Still on Daily Time frame,
On the Oscillators, we have bullish convergence and divergence with the price. It successfully closed above the EMAs (5,9,21) and above EMA 55 and MA 50. Chart:
snapshot

On 4 Hour Time frame,
EMAs (5,9,21,55) and MA 50 is starting cross bullish . The Oscillators made bullish divergences with the price.
snapshot

On 1 Hour Time frame,
However in this time frame. The Price have a short term downside that may bounced to EMAs but still the trend for upside may not be affected. As you noticed, the price bounced to EMAs. The 200 MA is crossing below the EMA 21 which makes it bullish .
snapshot

NOTE: Despite of Bullishness on the higher time frame, the price maybe affected by BTCUSD . In case of prolong downside price action, the pattern would rather a Double Top . Of course, it depends on how BTCUSD price reacts. So, Trade cautiously on this pair.

So, Trade Responsibly and Manage you Risk!

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Donation (It's up to you)
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NOTE: Not a Financial Advice to BUY/LONG Or SELL/SHORT
For Educational Purpose Only


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