IOTA PREPARING FOR A STRONG MOVE UPWARD....MORE STEAM NEEDEDRange bound and trading sideways in the last couple of months. Price bounced from the daily support level at 7490, and broke out of the long term downtrend line resistance but couldn't find enough steam to move above the 200 day MA where we got rejected last week.
However, the bulls were able to prevent price from falling further after a retest of the daily support level. Price bounced strongly from the daily support straight above the 50 and 200 day MA, giving us a temporary bullish setup.
The weekly resistance at 8100 area where we just got rejected appears to be a very strong resistance that the bulls will have to battle with.
A break and a close of the candle above the weekly resistance, will be a confirmation of a possible reversal in trend, as price would have moved above the 200 day MA by then.
After the pull back from the weekly resistance, price broke below the 200 day MA and right now price is clustering around the 200 day MA. Our Focus area right now will be as follows:
Weekly Resistance => 8100
200 MA 7890
Both of which are presently acting as resistance
Daily Support Level => 7038
50 day MA => 7490
Both of which are providing a nice amount of support
Buy Area (long term) => between 7900 - 7038 and down to yearly low of 6315.
For Mid or Short term trade opportunity, it's is better to wait for a break and close of the candle above the 200 day MA and weekly resistance, since price is already hovering around this area.
