TERRA LUNA CLASSIC (LUNC) still bearish with bullish signs
LUNC has been pushed down in the past few days by the double resistance trendline, breaking short term support levels in the process.
I switched to 1-hour timeframe for finer detail but I still use the levels and trendlines from the 4H time-frame.
I still consider the head & shoulders pattern to be the most significant influencing factor for this chart. I expect that we reach 0.00017 sooner or later. Still, we must always be preapred for a change of plans. I am not changing my bearish bias as long a the price stays below the red resistance trednline (the double-line). If it breaks up and manages to open and close a candle above the trendline, only then would I consider letting go of my H&S target price. I would still first wait for a daily candle close and another one to see if the trendline break was a fakeout or not. (if the second daily candle opens andcloses above the trendline, then I would expect that the trendline is no more valid)
What suggest a potential trendline break?
1. price has been moving in a descending (falling) wedge for days now which is usually a bullish pattern (more precisely it signals the potential continuation of an otherwise bullish trend - which we had before price came down in the past few days)
2. bullish divergences are forming on the RSI and Stochastic RSI indicators - et least on the hourly time-frame. I would wait for confirmation onhigher levels, though...
3. another support level is coming in between 0.00022 and 0.00024 which used to play some part in price action in the past. After that, there nothing really to stop price from falling to 0.00017.
Still, despite the bullish signs, we have no bullish action until the red resistance zone AND the red double-trendlines are broken with confirmation. Even after that I would prefer a retest in the following days to validate the break.
Until then, I am sitting on my cash (took profits somewhere around 0.00037 when the support trendline break was retested) and waiting to see whether I an buy back at 0.00017 or if structure breaks and suggests another buy level...
I switched to 1-hour timeframe for finer detail but I still use the levels and trendlines from the 4H time-frame.
I still consider the head & shoulders pattern to be the most significant influencing factor for this chart. I expect that we reach 0.00017 sooner or later. Still, we must always be preapred for a change of plans. I am not changing my bearish bias as long a the price stays below the red resistance trednline (the double-line). If it breaks up and manages to open and close a candle above the trendline, only then would I consider letting go of my H&S target price. I would still first wait for a daily candle close and another one to see if the trendline break was a fakeout or not. (if the second daily candle opens andcloses above the trendline, then I would expect that the trendline is no more valid)
What suggest a potential trendline break?
1. price has been moving in a descending (falling) wedge for days now which is usually a bullish pattern (more precisely it signals the potential continuation of an otherwise bullish trend - which we had before price came down in the past few days)
2. bullish divergences are forming on the RSI and Stochastic RSI indicators - et least on the hourly time-frame. I would wait for confirmation onhigher levels, though...
3. another support level is coming in between 0.00022 and 0.00024 which used to play some part in price action in the past. After that, there nothing really to stop price from falling to 0.00017.
Still, despite the bullish signs, we have no bullish action until the red resistance zone AND the red double-trendlines are broken with confirmation. Even after that I would prefer a retest in the following days to validate the break.
Until then, I am sitting on my cash (took profits somewhere around 0.00037 when the support trendline break was retested) and waiting to see whether I an buy back at 0.00017 or if structure breaks and suggests another buy level...
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