ETHCNY runs into sellers again around 1316.53
Ethereum/Chinese Yuan Index (ETHCNY) Technical Analysis Report for Nov 09, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ETHCNY finished Saturday at 1308.07 edging lower CN¥8.43 (-0.64%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ETHCNY as at Nov 09, 2019):
Saturday's trading range has been CN¥24.01 (1.82%), that's far below the last trading month's daily average range of CN¥82.51. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ETHCNY.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices are trading close to the key technical support level at 1280.92 (S1). After having been unable to move above 1327.19 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 1316.53. The last time this happened on Wednesday, ETHCNY actually gained 2.27% on the following trading day.
Though the cryptocurrency is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Selling could speed up should prices move below the nearby swing low at 1267.44 where further sell stops might get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for ETH/CNY. Out of 181 times, ETHCNY closed higher 54.70% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 57.46% with an average market move of 6.68%.
With five out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are LTCUSD gaining 2.57% and BCHUSD closing 1.29% higher. On the flipside the worst performers have been ETCUSD closing -0.8% lower and BTCUSD losing -0.16%. Looking at the other Minor Cryptocurrencies, the winners of the day have been KMDBTC surging 19.83% and KMDUSD closing 19.72% higher. The worst performers of the day have been SCBTC tanking -4.35% and PIVXBTC closing -4.06% lower. Read more