ETHCNY climbs to highest close since June 20, 2018
Ethereum/Chinese Yuan Index (ETHCNY) Technical Analysis Report for Nov 21, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, ETHCNY finished Saturday at 3600.10 gaining CN¥245.48 (7.32%) on high volume. Today's close at 3600.10 marks the highest recorded closing price since June 20, 2018. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 3423.33, ETH confirmed its breakout through the prior session high after trading up to CN¥179.21 above it intraday.
Daily Candlestick Chart (ETHCNY as at Nov 21, 2020):
Saturday's trading range has been CN¥299.70 (8.93%), that's far above the last trading month's daily average range of CN¥210.13. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for ETHCNY.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 3414.12 (now S1), which is likely to act as support going forward.
Crossing above the upper Bollinger Band for the first time since November 13th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 3038.32 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on November 13th, ETHCNY actually lost -9.93% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for ETH/CNY. Out of 193 times, ETHCNY closed lower 56.48% of the time on the next trading day after the market condition occurred.