27.10.14 Bitstamp Weekly Preview | Daily Time Interval
Price on Bitstamp above the lower 200MA BB support | Daily time interval
On the long side: For the past four days, price has been ranging between approximately $347 and $358. In this small range, $358 has been acting as near term resistance (pink line). A confirmed break above at least $359 will increase the possibilities of price reaching the 20MA resistance area at $374 – $377 (yellow line). If by that time momentum improves, then it may assist prices to break above $377 and possibly test the upper 20MA BB resistance area at $404-$406.
On the short side: Price weakness has been evident. An important support has been identified around $339. This is actually the area, where on the 8th of October, the 5MA crossed the lower 100MA BB to the upside and produced the rally to $417. If price manages to break below the current range ($347-$358), then it is quite possible that $339 will be tested. Our models estimate that this support must not break. If it does so, it will dramatically increase the possibilities of reaching the lower 200MA BB support area at $320-$324 or further below.
Overall: Price has entered another sideways action and is still weak. Bollinger bands are very wide, except from the 20MA BB’s that have started to contract a bit. RSI is supportive, MACD is still in negative momentum territory and Stochastic is trying to enter the support zone <20.
Possible Scenarios:
Long:
First Target: On a confirmed break above $358 – Price Target $377 | Probability: 22%
Second Target: On a confirmed break above $377 – Price Target $406 | Probability: 26%
Neutral: Price Range $347-$358 | Probability: 35%
Short:
First Target: On a confirmed break below $347 – Price Target $339 | Probability: 21%
Second Target: On a confirmed break below $339 – Price Target $324 | Probability: 28%
© 2014 – Cryptoalerts.net
On the long side: For the past four days, price has been ranging between approximately $347 and $358. In this small range, $358 has been acting as near term resistance (pink line). A confirmed break above at least $359 will increase the possibilities of price reaching the 20MA resistance area at $374 – $377 (yellow line). If by that time momentum improves, then it may assist prices to break above $377 and possibly test the upper 20MA BB resistance area at $404-$406.
On the short side: Price weakness has been evident. An important support has been identified around $339. This is actually the area, where on the 8th of October, the 5MA crossed the lower 100MA BB to the upside and produced the rally to $417. If price manages to break below the current range ($347-$358), then it is quite possible that $339 will be tested. Our models estimate that this support must not break. If it does so, it will dramatically increase the possibilities of reaching the lower 200MA BB support area at $320-$324 or further below.
Overall: Price has entered another sideways action and is still weak. Bollinger bands are very wide, except from the 20MA BB’s that have started to contract a bit. RSI is supportive, MACD is still in negative momentum territory and Stochastic is trying to enter the support zone <20.
Possible Scenarios:
Long:
First Target: On a confirmed break above $358 – Price Target $377 | Probability: 22%
Second Target: On a confirmed break above $377 – Price Target $406 | Probability: 26%
Neutral: Price Range $347-$358 | Probability: 35%
Short:
First Target: On a confirmed break below $347 – Price Target $339 | Probability: 21%
Second Target: On a confirmed break below $339 – Price Target $324 | Probability: 28%
© 2014 – Cryptoalerts.net
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