Bears Gnaw Tron's Bones, In Slow — Agonizing Ingestion (TRX/BTC)

Hi friends! Let's look at TRON! If you remember from yesterday's analysis, we determined that a bear flag was building on top of the 50 EMA (in orange,) and that tron would likely break below that level. We can see now, that the 50 EMA has been broken, and price is just drifting sideways between the 50 EMA and the 200 EMA (in purple.) We did get a bearish crossover on the MACD, but there hasn't been any volatile movement since the crossover formed — which makes it somewhat insignificant. Additionally, we can see that TRX/BTC is trading just above the 78.6% retrace, so it's being pinched between a couple of support and resistance levels. The 50 EMA continues to be a very reactionary level for TRX/BTC. I've illustrated the reactionary nature of the 50, with the "held" and "fail" markers on the chart. In terms of the most recent activity, we can see that Tron may be in the early stages of creating another series of failures at the 50 EMA. If you'll notice, there is actually a pattern of fails and holds. We can see that each time the first "Fail" or "Hold" is posted, at least two more tests follow. If this pattern is to repeat itself, we can assume that TRX/BTC may test the bottom of the 50 EMA, a few more times, in the near future. We have one fail posted right now, so perhaps a few more tests occur, before we get a break to the upside, or a break to the downside. Given the rollover in the MACD, the broad sell-side volume, the fact that we have fallen back below the 50 EMA, and are in an overall bearish downtrend channel, I have to give the advantage to the bears. If a breakout back above the 50 EMA occurs, look for a test of the top of the falling parallel channel. On the downside, a break below the 78.6% retrace will put TRX/BTC on the 200 EMA (in purple.) Below that, there is a clear drop to support around 380.

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***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***

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