KMDBTC still stuck within tight trading range
Komodo/Bitcoin Index (KMDBTC) Technical Analysis Report for Nov 22, 2020 | by Techniquant Editorial Team
KMDBTC ended Sunday at 0.0000264 losing BTC0.0000012 (-4.35%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (KMDBTC as at Nov 22, 2020):
Sunday's trading range has been BTC0.0000018 (6.52%), that's slightly below the last trading month's daily average range of BTC0.0000020. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for KMDBTC. Prices continued to consolidate within a tight trading range between 0.0000251 and 0.0000280 where it has been caught now for the whole last trading week.
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. After moving higher in the previous session, KMD closed lower but above the prior day's open today, forming a bearish Harami Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 0.0000251 (S1). After having been unable to move above 0.0000278 in the previous session, the cryptocurrency ran into sellers again around the same price level today, failing to move higher than 0.0000277. The last time this happened on November 11th, KMDBTC lost -5.92% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 0.0000278 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 0.0000251 where further sell stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Harami Candle" stand out. Its common bearish interpretation has been confirmed for KMD/BTC. Out of 23 times, KMDBTC closed lower 56.52% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 65.22% with an average market move of 0.30%.