Anybody who missed this rally might now be under stress since governments and central bankers are doing everything to destroy the purchasing power of this hard- earned currency which is sitting in the bank account paying no interest. Gold has done a good job to protect its holders. However, blindly chasing any asset that is in an uptrend is not a good strategy. The key is always to wait for pullbacks and dips so that one can buy low instead of high. Gold – Patience is A Virtue.
Looking back, my last two Gold analyses on March 15th and April 19th were partly a little too pessimistic. Although there was indeed a brutal sell-off down to US$1,450 on March 20th, the unprecedented expansion of the money supply by almost all central banks worldwide then quickly caused gold prices to rally towards US$1,747 within the following four weeks. Since this high point on April 14th, gold prices over all have traded sideways between US$1,660 and US$1,765. Thus, there wasn’t any deep pullback!
However, gold prices haven’t run away either. On the contrary, it must be noted that despite the corona crash and liquidity flooding, gold basically has not made much progress since its first interim high at US$1,689 on 24th of February. Currently, with spot gold trading slightly below US$1,710 prices are up less than US$20 since end of February!
In Euro terms, the results do look somewhat better. Here prices have just recently reached a new seven-year high at EUR1,632 in the past trading week and have also been in a flat up-trend over the last few weeks.
All in all, the price of gold has thus been stagnant for nearly eight weeks.
Technical Analysis: Gold in US-Dollars
On the weekly chart, gold bulls continue to strive to finally leave the uptrend channel that began in August 2018 behind them. So far, they have not yet succeeded in doing so. Should the bulls now run out of steam or do need a breather, a quick pullback towards the mid of the trend channel would be very likely. However, despite weeks of consolidation at a high levels, there is still no sign of exhaustion. But one could speak of a “dwindling bullish momentum”.
It is noticeable that since the beginning of the year gold has been moving primarily in the zone between the 61.8% fibonacci retracements (US$1,586) and the 78.6% fibonacci retracements (US$1,733). These fibonacci retracements relate to the major correction in the gold market when prices fell from US$1,920 down to US$1,045 between 2011 and 2015. Since the final low in December 2015, the bulls have now recovered 61.8% and 78.6% of the lost distance.
Hence, the zone between US$1,586 and US$1,733 is the last place of refuge for the gold bears. If this last bastion can be sustainably conquered, the way to the all-time high at US$1,920 and prices above US$2,000 would be clear. From this perspective alone, the confusing back and forth over the last few weeks is therefore not surprising. At the same time the bears obviously do not (yet) have enough strength to wrest larger space from the bulls here.
However, the stochastic oscillator does not look good on the weekly chart. Both lines are still bullishly embedded above 80, but as soon as the momentum starts to turn, the strongly overbought position immediately will kick in and deliver a sell-signal. in that case a multi-weeks to multi-months corrective phase becomes extremely likely.
All in all, gold prices have been treading water for weeks now and seem to be slightly stuck above US$1,700. However, a trend reversal has not happened. Ideally, the slightly disjointed picture will dissolve with a healthy but overall manageable pullback in the summer months.
On the daily chart, the bulls managed to break out of the five-week consolidation triangle on May 14. With the following spike towards US$1,765 they immediately made it clear who is in charge. In the meantime, however, this actually bullish breakout has already come to an end without any sustained gains, as prices have been falling rather rapidly from US$1,765 down to US$1,698.
Now bulls will have to answer with a bounce and a compelling recovery. However, prices above US$1,730/1,735 might already cause difficulties. Nevertheless, the chances of another wave up into the range between US$1,745 and US$1,765 are pretty good. Especially as the stochastic oscillator he has cooled down considerably on the daily chart and move in the neutral zone. This setup would once again provide enough room for another bullish run.
Furthermore, the silver price, which had just begun to move two weeks ago, does not appear to have reached the end of its rally yet. Rather, silver could pull the price of gold up again for the next few weeks.
In summary, the daily chart is neutral after weeks of consolidation. Similar to last spring and last autumn, gold prices managed to work off the heavily overbought situation without major losses but only with mild declines. Thus, at least in the short term, there is once again the chance of a rise towards the highs of US$1,765 on the chart. Even a new high at US$1,800 can not be ruled out.
A commitment of Traders: Gold
Since the breakout above the multi-year resistance zone at US$1,350/1,375 in May 2019, the situation in the gold futures market has been extremely overstretched and completely unhealthy. With the temporary crash in mid-March, the pent-up pressure was at least partially released, with commercial hedgers covering part of their exorbitantly large short position.
At the same time, however, the supply and demand shock caused by the corona crisis caused even greater difficulties for the paper jugglers on the COMEX. Short-term pullbacks of US$50 can apparently still be arranged somehow, but much lower prices below US$1,500 are not in sight. However, the commercial hedgers would need these prices to profitably cover their cumulative short position of currently 290,174 contracts.
Overall the CoT-report continues to provide a clear sell-signal for the gold price. A promising contrarian bottleneck is far away and would be present at the earliest with the cumulative short position reaching levels below 100,000 contracts.
The development in the silver futures market is positive, however. Here the professional players have used the crash down to US$11.60 to cover their short position. From the CoT perspective silver should no longer be threatened by another major pullback.
Sentiment: Gold – Patience Is A Virtue
The Optix sentiment barometer for the gold price continues to provide significantly high levels of optimism among market participants. Although the pullback over the last few days has certainly caused a decrease in euphoria, the overall consensus is still clearly in favour of further rising gold prices.
Rarely, however, do markets simply move straight up. Rather, they have to use twists and turns to make sure that the masses do not fully participate in the price increases. In order to refresh the so-called “wall of worry”, a pullback towards US$1,650 or 1,600 would probably suffice.
In summary, the Gold Optix continues to urge caution. Only when mistrust and possibly even panic and fear spread at least to some extent among gold investors, will there be meaningful and contrarian entry opportunity again. Other than that, patience is a virtue.
Seasonality: Gold – Patience Is A Virtue
For the next five to ten weeks the seasonal pattern is not supporting rising gold prices. Typically, June is the month of pullbacks in the gold market, which usually bottom out in July or mid August at the latest. Should a similar pattern occur this year, a good buying opportunity would present itself. By the way, these summer lows often also marked the low for the year.
This year however, the U.S. presidential elections, which are scheduled for November 3rd, must also be taken into account. This event should determine the second half of the year for financial markets in general. The American central bank FED will certainly do everything possible to prevent the markets from collapsing before these elections.
The further expansion of the money supply necessary for this should certainly support precious metal prices on the one hand. On the other hand, however, there is also a statistical pattern which indicates potential difficulties for gold in the second half of the year. In front of the last U.S. presidential election in 2016, gold had gotten stuck around US$1,350 to 1,375 in the summer months and then corrected down to US$1,123 by mid-December.
In conclusion, the seasonal outlook currently recommends a patient and wait-and-see stance. Should there be a pullback within the next two months, it would be a good buying opportunity. If, on the other hand, prices remain stable around and above US$1,700 in June and July, the danger increases that the unfavorable U.S. election cycle will start to affect gold from late summer.
Currently, you have to pay 5.15 ounces of gold for one Bitcoin. In other words, a troy ounce of gold currently costs only 0.194 Bitcoin. Since the low point of the corona crash, Bitcoin has been able to outperform gold by a considerable margin.
On top, since the second week of May, Bitcoin has been knocking at the upper edge of the large consolidation triangle once again. Thus, the chances of a breakout to the upside continue to rise. Only if there would be another blatant attack of weakness in Bitcoin we would have to prepare for another round of consolidation lasting several months. Otherwise, and that is what it looks like at the moment, the breakout from the triangle is imminent in these weeks until the summer. Subsequently, a sharp rise in Bitcoin prices would be the logical consequence.
Generally, buying and selling Bitcoin against gold only makes sense to the extent that one balances the allocation in the two asset classes! At least 10% but better 25% of one’s total assets should be invested in precious metals (preferably physically), while in cryptos and especially in Bitcoin one should hold at least 1% up to 5%. Paul Tudor Jones holds a little less than 2% of his assets in Bitcoin. If you are very familiar with cryptocurrencies and Bitcoin, you can certainly allocate higher percentages to Bitcoin and maybe other Alt-coins on an individual basis. For the average investor, who is normally also invested in equities and real estate, 5% in the highly speculative and highly volatile bitcoin is already a lot!
“Opposites compliment. In our dualistic world of Yin and Yang, body and mind, up and down, warm and cold, we are bound by the necessary attraction of opposites. In this sense you can view gold and bitcoin as such a pair of strength. With the physical component of Gold and the digital aspect of Bitcoin you have a complimentary unit of a true safe haven in the 21st century. You want to own both!” – Florian Grummes
Conclusion and Recommendation: Gold – Patience Is A Virtue
Gold doesn’t seem to know where it’s going these days. For weeks now, prices have been clearly trading above US$1,700 and trying to break through the resistance zone between US$1,740 and 1,765 only to fall all the way back to and slightly below US$1,700. At the same time, volatility has been on retreat since March 19th. At least things have calmed down a bit in the gold market. But the bulls still have the upper hand. The bears, on the other hand, have been making increased efforts to reverse the trend since the last high point at US$1,765. Apart from a decline to just under US$1,700, however, they have not (yet) achieved much.
Generally, we should always remember that just before the biggest rises in the gold market, all weak hands are usually shaken off. In this respect, a pullback in early summer remains the preferred scenario. This way, gold prices do not have to fall so extremely low. A decline to US$1,650 or to the rising 200-day line in the US$1,600 range would presumably be completely sufficient. Afterwards, gold would be ready for the next wave up, which should then target the resistance around US$1,800 as well as the all-time high at USD$1,920.
If, on the other hand, gold prices can hold steady above US$1,700 throughout the coming two to three months, the probability increases that there will be a more pronounced correction starting in late summer just a few months before the U.S. elections.
Either way, the risk/reward-ratio for gold is not ideal at the moment. It is therefore advisable to simply remain patient and wait at least until an oversold setup on the daily chart and ideally also on the weekly chart. However, one should not lose sight of gold, because in times of unconditional stimuli from almost all central banks worldwide, every somewhat larger pullback already means a buying opportunity in the gold market.
The soft reopening so far appears to be going well and is leading to further easing measures, including the prospect of travel again before the summer is over which is coming as a huge relief to those in the industry that have been ravaged by the crisis.
The stock market recovery appeared to stall in May but it seems to have found some momentum once again, with the news of human vaccine trials naturally aiding the move. While the data we’re seeing so far is encouraging, there may be diminishing returns so the longer we go without a vaccine or cure, the worse the data could become. Thankfully, what we’re seeing in both of these cases gives us cause for optimism.
Tensions between the US and China are hotting up and Hong Kong is proving to be an interesting battle ground. The US is now believed to be pondering sanctions, as China prepares to vote on a controversial new national security law to be imposed on Hong Kong. As yet, the strained relationship between the US and China hasn’t hampered markets too much but that could quickly change.
Oil looking strong
Oil is slightly paring gains today but continues to make impressive gains more broadly. Naturally, reports of economies successfully easing restrictions is providing a significant boost to oil prices, with the reopening of borders in the coming weeks only further supporting demand and therefore prices.
While the reopening will be gradual and people will take time to emerge from the safe shelter of their homes, particularly when it comes to foreign travel, these are hugely positive moves for oil producers as prices close in on $40. It’s now a question of when they’ll turn on the taps again and how much they choose to or even how fast they’ll be able to.
Gold facing some big tests
Goldis edging lower again today and closing in on $1,700. The yellow metal seemed to lose all momentum not long after eventually breaking through $1,750 resistance. A break back below $1,700 would be troubling for gold, from a psychological perspective, but the $1,660-1,680 region is far more key. A break of this would spell trouble for gold.
Bitcoin fighting back but $8,000 looks vulnerable
Bitcoin found some support around $8,500 this morning and has reversed course to test $9,000, around where it is already starting to struggle. It’s not looking great for the cryptocurrency, with $8,000 being the next major level below. A break of this and it will be like the halving event never happened and all the gains that came its way during that high exposure period will have been lost. Nervy times.
Why? The most difficult part in trading is execution. No matter if you trade on a neighbors hunch or a computerized trading system, it is sheer impossible to execute a foreigner’s system. You might spend thousands of dollars on a sophisticated black box software and will find yourself turning it off at exactly the worst moment.
Trading is psychology! When a stranger’s advice hit a series of losses you simply can’t stand the heat anymore. Right at that point though, the winning trades might follow. Consequently you underperform the system since you skipped the execution of those vital winners. Built not bought.
BTC-USDT, Monthly Chart
One core component for ending up in the green is a roadmap. A high time frame overview of what your trading instrument is doing from a larger perspective. In the case of Bitcoin we are finding ourselves at exciting times of a possible triangle breakout to the upside. A strong supply zone right below actual price, supports the general tone to be bullish.
BTC-USDT, Daily Chart – Aggressive Early Entry:
With the principles of our quad exit strategy minimizing risk, we already took an aggressive weekly long entry based on the above daily 40 simple moving average support and other key factors.
Weekly Chart, Built Not Bought, BTC-USDT versus XMR-USDT, Bitcoin Leading:
To further reduce risk we use an inter-market relationship we recently extracted. The above weekly chart depicts the relationship between Bitcoin (white line) and Monero (dark blue line).
Points 1,2 and 3 are time starting points where you can make out that Bitcoin has found its recent absolute low within that week.
From those points on Bitcoin prices advanced and built over the next weeks double or triple bottoms. Illustrated by rising green lines. Most likely these price advances created in most trading systems confirmed long entries.
While Bitcoin at the starting points had its recent lows, Monero actually continued each time trading lower in the weeks to follow. Indicated by falling orange lines.
One way of taking advantage of this market relationship between those two trading vehicles would be of taking a confirmed Bitcoin long entry signal and rather trade the still suppressed Monero prices. Risk is smaller due to the tighter stop and better risk-reward ratio. Consequently one could potentially get more bang for the buck.
In a way Bitcoin can be used as a leading indicator for a Monero trade.
BTC-USDT versus XMR-USDT, Weekly Chart, Built Not Bought, Good Exit Timing:
Let us now look at exits. We find a similar relationship to be mutually beneficial to time exits well on Monero through Bitcoin price observation.
We would like to encourage the reader to find very similar relationships extended through our whole portfolio. This way feeling more familiar with our entry and exit timing. As a result making principles and market relationships that we observed your own as well.
Built not bought
It is the series of trades that make a long term winner, not an individual trade. Since we do not have an intuitive aspect as humans for thinking in probabilities we need to gain psychological strength elsewhere for proper execution. Only in depth knowledge of a trading system paired with repetition of reinforced positive results can lead to execution confidence. We are aware that not everybody can master all aspects of becoming a successful investor in creating their own systems from scratch. There are no free lunches though and as such we encourage to take our trading principles, stack them and make them at least partially your own. You can’t just buy a Ferrari and immediatly expect to win the race. Looking under the hood and being aware of the core components, in addition of taking at least a few driving lessons, is part of becoming a winner.
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Outstanding abstract reasoning ability and ability to think creatively and originally has led over the last 25 years to extract new principles and a unique way to view the markets resulting in a multitude of various time frame systems, generating high hit rates and outstanding risk reward ratios. Over 20 years of coaching traders with heart & passion, assessing complex situations, troubleshoot and solve problems principle based has led to experience and a professional history of success. Skilled natural teacher and exceptional developer of talent.Avid learner guided by a plan with ability to suppress ego and empower students to share ideas and best practices and to apply principle-based technical/conceptual knowledge to maximize efficiency. 25+ year execution experience (50.000+ trades executed) Trading multiple personal accounts (long and short-and combinations of the two). Amazing market feel complementing mechanical systems discipline for precise and extreme low risk entries while objectively seeing the whole picture. Ability to notice and separate emotional responses from the decision-making process and to stand outside oneself and one’s concerns about images in order to function in terms of larger objectives. Developed exit strategies that compensate both for maximizing profits and psychological ease to allow for continuous flow throughout the whole trading day. In depth knowledge of money management strategies with the experience of multiple 6 sigma events in various markets (futures, stocks, commodities, currencies, bonds) embedded in extreme low risk statistical probability models with smooth equity curves and extensive risk management as well as extensive disaster risk allow for my natural capacity for risk-taking.
Seasoned investors continue to cross over from the more mature asset classes and regulators have eased off on the Crypto assault that led to the 2018 slump.
With Bitcoin and the broader market sitting at more than 50% below their all-time highs, there is still plenty of incentive to enter the crypto sphere.
For many, however, the crypto market may seem like a maze. There are a tremendous number of exchanges and brokers and that is before considering regulations imposed by regulators in recent years.
Investing in cryptocurrencies requires a level of due diligence not too dissimilar to the research involved in other more mature asset classes.
The volatility and sizeable returns on offer have certainly allowed investors to dream. After all, Bitcoin has yielded a mass number of Bitcoin millionaires, more commonly known as whales.
So, how do we invest in cryptocurrencies?
While there are multiple considerations, some are more important than others when looking to enter the crypto market.
Just jumping in on a whim that the majors will reach historical highs is a dangerous game. This is no dissimilar to jumping into the equity markets when they are sitting at record highs.
There is one material difference, however. The regulatory landscape has materially changed since late 2017. For this very reason, investors may continue to face plenty of uncertainty before the market can find a return to the hay days.
Understanding the key drivers and market characteristics are therefore particularly important.
In this guide, you will learn the key preparations that you need in order to build your cryptocurrency portfolio.
Before making an investment, deciding on the source of funds would certainly be step 1.
Credit Card or Bank Account – Investors will, therefore, need to decide on cash or credit card. As an investor, you can either fund your crypto trading account with a debit/credit card or by funding with a bank transfer.
It is worth noting, however, that certain jurisdictions have banned the funding of crypto exchanges with credit cards. Some banks have even taken a step further and banned the transfer of fiat money to such exchanges.
Nonetheless, the simplest method to fund a crypto exchange account is with a credit/debit card. This does tend to come with higher fees and caps on transfer amounts, however.
Fiat to Bitcoin Exchange
First, you need to decide on which cryptocurrency or cryptocurrencies that you wish to trade.
You would then need to identify the exchanges that have the largest trading volumes for the chosen cryptocurrencies.
One consideration here is your source of funds. Not all exchanges allow fiat money deposits. A vast majority of exchanges restrict deposits to Bitcoin.
Carrying out the necessary research on the most appropriate exchange is important. If you are looking for an exchange that accommodates the purchase of Bitcoin with fiat money:
Coinbase is popular and easy to use, with a strong global presence. The exchange has the necessary security measures as well as delivering adequate liquidity for trading.
When searching for the right exchange, it is worth noting that each has its pros and cons. The important thing is to identify the exchange that, first and foremost, delivers on your personal requirements.
These crypto exchanges not only cater to Bitcoin investors and traders but altcoins in general.
It’s also worth considering exchanges that offer a wider choice of cryptocurrencies and altcoins. This would allow you to diversify your investments and gain exposure to the broader crypto market.
We recommend that you use Coingecko to research the respective cryptocurrencies and volumes across the exchanges.
Bitcoin to Crypto Exchange
The next exchanges that you should look into are the ones you will be using for the Altcoins. Many of the smaller coins, my market cap, are generally not supported by larger exchanges. Generally speaking, the only way to buy those smaller coins is by buying them using Bitcoins or Ethereum.
On most exchanges, you need to deposit Bitcoins as you cannot buy coins directly from the exchange. This is why it’s crucial that you have a Fiat to Bitcoin Exchange first.
The next step in the crypto investment journey is to select the appropriate crypto wallets. It is essential to have your crypto wallet before buying any cryptocurrencies. You will need wallets to store your coins within your secure personal wallets.
While exchanges allow investors to hold purchases coins within assigned exchange wallets, it’s recommended that you withdraw your cryptos and hold them in private wallets. This protects you and your investments from hackers and theft. It is also worth noting that wallet compatibility also needs to be considered.
Crypto wallets to choose from include but are not limited to:
Prior to deciding on the most suitable crypto exchanges and wallets to support your trading activity, you need a trading strategy. As part of your strategy build, there are a number of factors to keep in mind:
Only invest in what you can afford to lose
Do not take a loan to invest
Do your own research, monitor the news wires, and view technical analysis on the respective cryptos that you decide to go with. FX Empire covers the largest cryptos, with exchanges also providing technical analysis to their users free of cost.
Set realistic expectations, don’t be greedy, and know when to accept a loss. (It is easy to be influenced by the news wires and overzealous analysts talking of the next crypto boom or doom. It is best to block out such noise.
Forming a Crypto Trading Strategy
While identifying the most appropriate wallets and exchanges are vital, formulating a trading strategy is undoubtedly the most important pre-investment step for a prospective trader.
Cryptocurrency selection – A blend of the largest cryptos along with medium-sized to small cryptos by market cap is recommended. This also addresses any liquidity issues for the overall portfolio.
Worth noting – A certain cryptocurrencies may have values that exceed the intended investment size. In such instances, identifying an exchange that offers CFDs or partial investment of a crypto coin is important.
Trader durations – For traders with adequate time to trade, a short, medium, and longer-term trading strategy would make sense.
Smaller size, more volatile, coins increase earnings potential intraday. These should ideally form no more than 20% of the total investment pool.
The Largest coins should form longer-term strategies. With adequate research, however, smaller coins may also form part of this strategy.
For the more medium-term strategies, which would be anything beyond intraday but less than a month, a blended portfolio is recommended. This can comprise of small, medium, and large-cap coins.
In any trading strategy -using risk management tools and indicators is recommended. While there are fees incurred for using stop loss and trade profit, using these would protect your downside.
When considering crypto market volatility and the rise and fall of the smaller coins, an 80/20 blend of large-cap to mid to small-cap would be recommended.
This would provide the opportunity to make sizeable gains any sudden surge in the small to mid-cap cryptos, whilst also holding the more stable coins. Do note that stable is a relative term in the crypto market. Even Bitcoin can see sizeable swings on a given day…
Does the Number of Coins Matter?
It ultimately boils down to the investment strategy that you build. With a blended portfolio, 1 Bitcoin may make up your large-cap portfolio, or 20 Litecoin for instance. It is important to focus on the blend rather than the actual number of coins that make up each component of the portfolio.
Below is a range of cryptos to consider the different components of your portfolio. This is not a comprehensive breakdown of the broader market and there may be coins that are more to your liking. As always, carry out the necessary research before hitting the buy or sell order…
Zcash, VeChain, True USD, Tron’s TRX, Qtum, OmiseGo, OKB, NEO, Ethereum Classic, Dogecoin, DASH, and Cosmos. These have been selected based on 24-hour volumes and have market caps of between $100m and $1bn.
This will consist of cryptos with a market cap of less than $100m and will likely have lower trading volumes. That means less liquidity, which is why this component should form a lower proportion of the portfolio.
Litecoin slid by 4.08% on Sunday. Following on from a 0.77% decline on Saturday, Litecoin ended the week down by 3.75% to $42.06.
A bullish start to the day saw Litecoin rise to a mid-morning intraday high $44.56 before hitting reverse.
Coming up against the first major resistance level at $44.53, Litecoin slid to a late afternoon low $42.50.
Litecoin fell through the first major support level at $43.46 and second major support level at $43.04.
Finding support late on, Litecoin briefly recovered to $43.45 levels before a final house sell-off.
Litecoin slid back through the second major support level to an intraday low $42.02.
At the time of writing, Litecoin was up by 1.05% to $42.50. A bullish start to the day saw Litecoin rise from an early morning low $41.76 to a high $42.70
Litecoin left the major support and resistance levels untested early on.
For the day ahead
Litecoin would need to move back through to $43 levels to bring the first major resistance level at $43.73 into play.
Support from the broader market would be needed, however, for Litecoin to breakout from the morning high $42.70.
Barring an extended crypto rally, the first major resistance level would likely limit any upside.
Failure to move back through to $43 levels could see Litecoin fall back into the red.
A fall back through the morning low $41.76 would bring the first major support level at $41.21 into play.
Barring another extended crypto sell-off, however, Litecoin should steer clear of the second major support level at $40.37.
Looking at the Technical Indicators
Major Support Level: $41.21
Major Resistance Level: $43.73
23.6% FIB Retracement Level: $62
38.2% FIB Retracement Level: $78
62% FIB Retracement Level: $104
Stellar’s Lumen slid by 4.74% on Sunday. Following on from a 1.28% loss on Saturday, Stellar’s Lumen ended the week down by 7.04% to $0.064001.
A bullish start to the day saw Stellar’s Lumen rise to an early morning intraday high $0.068167 before hitting reverse.
Falling short of the first major resistance level at $0.06856 Stellar’s Lumen fell to a late afternoon low $0.065418.
The reversal saw Stellar’s Lumen fall through the first major support level at $0.06629 before briefly recovering to $0.066 levels.
A final hour sell-off, however, saw Stellar’s Lumen slide to an intraday low $0.063814. Stellar’s Lumen slid through the first major support level at $0.06629 and second major support level at $0.06537.
At the time of writing, Stellar’s Lumen was up by 1.18% to $0.064755. A bullish start to the day saw Stellar’s Lumen rise from an early morning low $0.063783 to a high $0.064896.
Stellar’s Lumen left the major support and resistance levels untested early on.
For the day ahead
Stellar’s Lumen would need to move back through to $0.06530 levels to bring the first major resistance level at $0.06684 into play.
Support from the broader market would be needed, however, for Stellar’s Lumen to break out from the morning high $0.064896.
Barring a broad-based crypto rebound, the first major resistance level and Sunday’s high $0.068167 would likely limit any upside.
Failure to move through to $0.06530 levels could see Stellar’s Lumen hit reverse.
A fall through to sub-$0.064 levels would bring the first major support level at $0.06249 into play.
Barring an extended crypto sell-off, however, Stellar’s Lumen should steer clear of the second major support level at $0.06097.
Looking at the Technical Indicators
Major Support Level: $0.06249
Major Resistance Level: $0.06684
23.6% FIB Retracement Level: $0.1051
38% FIB Retracement Level: $0.1433
62% FIB Retracement Level: $0.2050
Tron’s TRX slid by 5.15% on Sunday. Reversing a 0.95% gain from Saturday, Tron’s TRX ended the week down by 5.43% to $0.014200.
A bullish start to the day saw Tron’s TRX rise to a mid-morning intraday high $0.015300 before hitting reverse.
Falling short of the first major resistance level at $0.01546, Tron’s TRX fell to a late afternoon low $0.014464.
Tron’s TRX fell through the first major support level at $0.01469 before briefly recovering to $0.01470 levels.
A late sell-off, however, saw Tron’s TRX slide to an intraday low $0.014200. Tron’s TRX fell through the first major support level at $0.01469 and second major support level at $0.01438.
At the time of writing, Tron’s TRX was up by 1.80% to $0.014456. A bullish start to the day saw Tron’s TRX rise from an early morning low $0.014117 to a high $0.014456.
Tron’s TRX left the major support and resistance levels untested early on.
For the Day Ahead
Tron’s TRX would need to move back through to $0.01460 levels to support a run at the first major resistance level at $0.01493.
Support from the broader market would be needed, however, for Tron’s TRX to break out from the morning high $0.014456.
Barring a broad-based crypto rebound, the first major resistance level would likely limit any upside.
Failure to move through to $0.01460 levels could see Tron’s TRX hit reverse.
A fall through the morning low $0.014117 would bring the first major support level at $0.01383 into play.
Barring an extended crypto sell-off, however, Tron’s TRX should steer clear of sub-$0.014 levels.
Looking at the Technical Indicators
Major Support Level: $0.01383
Major Resistance Level: $0.01493
23.6% FIB Retracement Level: $0.0322
38.2% FIB Retracement Level: $0.0452
62% FIB Retracement Level: $0.0663
Please let us know what you think in the comments below