I was busy most of yesterday taking care of a pressing issue that materialized soon after I awoke. I hardly even looked at the markets, with the exception of a quick look at XLM. I posted a message on our chat channel that said: “There is a a bear case to be made for XLM”. I followed that up with a screenshot of the 8 hour XLM chart, and sold my XLM. From that point, I did not look at the charts again until this morning. I see it got ugly…
The good news is that this too shall pass. Wherever the bottom is, it is getting close. But it presents a teaching opportunity. Like XLM, almost all the charts gave warning signals before they broke. Supports started breaking, issuing alerts that it was time to pay attention.
ETC closed below the 1×1, and tried to get above it at the 1st arc pair and failed. That was a sell signal, for short term traders. The good news is that the 1×2 angle just below might (?) provide support, enabling it to get through the arc here.
ETH kept violating the supports underneath it before struggling with a rally. Each time was a warning that the support it was bouncing off was weak and likely to be re-tested. The good news is that the 5th arc might (?) provide a good trading opportunity.
LTC, like the charts above, has support just below. It is too early to say for sure that the 3rd arc will offer strong support. But it might be a good trade opportunity.
On the chat channel some 36 hours ago, we noted the break of support of the 1st arc, and the .5 pitchfork. It was a warning sign we saw and discussed. The break of the 3rd arc pair was ominous. Now, the 4th arc is supporting. Will it hold? It might. If not, the 5th arc is the likely target.
XLM broke support 24 hours ago. It is now testing 3rdarc support. I’m not sure the support will hold. It might, but if not she still has a ways to fall I’m afraid.
Like ETC, XRP gave a huge red flag when it closed below the 1×1 at the 1st arc pair. Looking at this setup, there is not much support below until we get to .235…
Overall, it looks like yesterday was a good day to miss. It will be over soon though, I suspect.
Remember: The author is a trader who is subject to all manner of error in judgment. Do your own research, and be prepared to take full responsibility for your own trades.