TRXUSD a short term correction before the next bullish move
Hi guys hope you are doing good. In today's article we will watch how the Tron is completing the setup for the long term bullish rally that can take the price action of TRX to $1.
Up channel, moon phases and EMAs:
The price action of TRX is moving within an up channel since after mid of March 2020. During this bullish move the price action of TRX is using the exponential moving averages 10 and 21 as strong support very well. Whenever the price action reaches the support of these two moving averages it takes bounce from here and reaches at the resistance of the channel. Recently from 21st May to 29th May 2020 the price action was moving sideways at the support of the channel and above the moving averages and finally it has taken another bounce and produced more than 17% rally.
Here I have also placed the moon phases indicator. That is very useful to determine the bearish and bullish trends. On the chart, you can notice there are full moons and also dark moons. The distance from one moon to another moon is called a synodic cycle that is 29.5 days long. The most recent full moon has appeared below the resistance of the channel. And at this time priceline has also reached the resistance of the channel, therefore the full moon is indicating that it would be difficult for the priceline to move up more from this level. If we take a look at the most recent dark moon then it has appeared below the support of the channel. Therefore there is a possibility that the price action of Tron can reach up to that level. However, for the breakout we need that next dark moon within the channel and the new full moon should be appeared above the resistance of the channel.
Simple moving averages turned more bullish:
I have placed simple moving averages with the time period of 25,50, 100 and 200. The price action has crossed up all the simple moving averages. And the 25 simple moving average is moved above all other simple moving averages that is very positive move. Once the biggest time period moving average that is 200 will be moved below all other moving averages then a complete opened alligator mouth by the simple moving averages can be formed and once this alligator mouth will be completed then a strong upward move can be triggered. At this time the 50 simple moving average has almost formed a golden cross with 200 simple moving average. That is a very warm invitation to the traders as this golden cross is considered as a very strong buying signal among the traders community.
A descending triangle:
On weekly chart the price action of TRX is moving in a descending triangle. When I posted my previous article the price action was very close to the support now at this time the priceline of Tron has reached at the resistance. There is a very positively signal by the Bollinger bands that it has moved above the resistance of the triangle. Therefore it will be easy for the priceline to have break out. I've also placed the volume profile on the complete price action moving within this triangle that is showing the traders interest up to $0.026. That is clear indication that we have the traders interest above the level where the price action is moving at this time therefore it can be traded more higher.
Priceline is moving towards next resistance level:
If we watch a different support and resistance levels on the long-term weekly chart. Then it can be clearly noticed that after the strong bearish trend in the month of March 2020. The price action reached up to the support of $0.0127 and bounced from there. Now at this time the price action is moving to next resistance level of $0.023. This resistance is not broken out since it was broken down in August 2019. Then we have the next resistance level at $0.031 and if this resistance will be broken out then we have another strong resistance at $0.04 cents. And this resistance is also not broken out since after July 2018 when it was broken down. In case of breaking out the $0.04 resistance, the next resistance level is 8 cents because TRX doesn’t have any significant resistance between these two levels on long term chart. The $0.08 resistance is very strong as it is not broken out since May 29 2018. And once the priceline will be able to break out this key level resistance then within no time it can reach up to 35 cents. Because there is no significant resistance on the long-term between 8 cents and 35 cents. And if $0.35 resistance will be broken out then the price action can reach up to $1 is well.
Conclusion:
As at this time the price action has reached up to the resistance of the channel. Therefore there is a possibility that on short term Tron will start a correction rally up to the support of the channel. And that is at $0.015 and this is the level where the TRX has the 25 simple moving average support. However, on the long-term price action of the Tron is bullish
Up channel, moon phases and EMAs:
The price action of TRX is moving within an up channel since after mid of March 2020. During this bullish move the price action of TRX is using the exponential moving averages 10 and 21 as strong support very well. Whenever the price action reaches the support of these two moving averages it takes bounce from here and reaches at the resistance of the channel. Recently from 21st May to 29th May 2020 the price action was moving sideways at the support of the channel and above the moving averages and finally it has taken another bounce and produced more than 17% rally.
Here I have also placed the moon phases indicator. That is very useful to determine the bearish and bullish trends. On the chart, you can notice there are full moons and also dark moons. The distance from one moon to another moon is called a synodic cycle that is 29.5 days long. The most recent full moon has appeared below the resistance of the channel. And at this time priceline has also reached the resistance of the channel, therefore the full moon is indicating that it would be difficult for the priceline to move up more from this level. If we take a look at the most recent dark moon then it has appeared below the support of the channel. Therefore there is a possibility that the price action of Tron can reach up to that level. However, for the breakout we need that next dark moon within the channel and the new full moon should be appeared above the resistance of the channel.
Simple moving averages turned more bullish:
I have placed simple moving averages with the time period of 25,50, 100 and 200. The price action has crossed up all the simple moving averages. And the 25 simple moving average is moved above all other simple moving averages that is very positive move. Once the biggest time period moving average that is 200 will be moved below all other moving averages then a complete opened alligator mouth by the simple moving averages can be formed and once this alligator mouth will be completed then a strong upward move can be triggered. At this time the 50 simple moving average has almost formed a golden cross with 200 simple moving average. That is a very warm invitation to the traders as this golden cross is considered as a very strong buying signal among the traders community.
A descending triangle:
On weekly chart the price action of TRX is moving in a descending triangle. When I posted my previous article the price action was very close to the support now at this time the priceline of Tron has reached at the resistance. There is a very positively signal by the Bollinger bands that it has moved above the resistance of the triangle. Therefore it will be easy for the priceline to have break out. I've also placed the volume profile on the complete price action moving within this triangle that is showing the traders interest up to $0.026. That is clear indication that we have the traders interest above the level where the price action is moving at this time therefore it can be traded more higher.
Priceline is moving towards next resistance level:
If we watch a different support and resistance levels on the long-term weekly chart. Then it can be clearly noticed that after the strong bearish trend in the month of March 2020. The price action reached up to the support of $0.0127 and bounced from there. Now at this time the price action is moving to next resistance level of $0.023. This resistance is not broken out since it was broken down in August 2019. Then we have the next resistance level at $0.031 and if this resistance will be broken out then we have another strong resistance at $0.04 cents. And this resistance is also not broken out since after July 2018 when it was broken down. In case of breaking out the $0.04 resistance, the next resistance level is 8 cents because TRX doesn’t have any significant resistance between these two levels on long term chart. The $0.08 resistance is very strong as it is not broken out since May 29 2018. And once the priceline will be able to break out this key level resistance then within no time it can reach up to 35 cents. Because there is no significant resistance on the long-term between 8 cents and 35 cents. And if $0.35 resistance will be broken out then the price action can reach up to $1 is well.
Conclusion:
As at this time the price action has reached up to the resistance of the channel. Therefore there is a possibility that on short term Tron will start a correction rally up to the support of the channel. And that is at $0.015 and this is the level where the TRX has the 25 simple moving average support. However, on the long-term price action of the Tron is bullish
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