BCHUSD Point of Control|21 DEMA| Structural Resistance

31 במרץ 2020Evening Traders,

Today’s analysis will be on BCHUSD, testing a key resistance (21 DEMA) in a defined down trend. This current trade location is in confluence with the POC, a breakdown will just be another lower high.

Points to consider,
- Trend bearish – Consecutive lower highs
- 21 DEMA, current resistance
- Local support at yearly lows
- RSI approaching resistance
- Stochastics in upper regions
- Volume declining

Bears are in clear control with consecutive lower highs in place, a very good visual guide is the 21 Daily EMA, acting as strong resistance. BCH is currently in a very key trade location with multiple confluences such as the POC and the .236 Fibonacci – holding price down.

A rejection will keep BCH on course to testing yearly lows again – next local support.

The RSI is nearing resistance; a decisive break will be in confluence with the price breaking the 21 DEMA – staunched resistance. The Stochastics on the other hand is in the upper regions, can stay trading here for an extended period of time, however lots of stored momentum to the downside.

Volume nodes are clearly declining, signalling an impulsive move is imminent, either up or down, it will dictate the immediate trend.

Overall, in my opinion, BCHUSD can break the 21 DEMA and still place a lower high. It needs to break structural resistance with a consolidation above for a confirmation of a trend change.

What are your thoughts?

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And remember,

The market can stay irrational longer than you can stay solvent. - John Maynard Keynes