KMDUSD finds buyers at key support level
Komodo/US Dollar Index (KMDUSD) Technical Analysis Report for Nov 10, 2019 | by Techniquant Editorial Team
KMDUSD finished Sunday at 0.79 losing $0.06 (-7.06%). Trading $0.05 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (KMDUSD as at Nov 10, 2019):
Sunday's trading range has been $0.13 (15.66%), that's far above the last trading month's daily average range of $0.06. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for KMDUSD.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After trading down to 0.75 earlier during the day, Komodo bounced off the key technical support level at 0.77 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on Friday, KMDUSD gained 19.72% on the following trading day.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 0.62.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for KMD/USD. Out of 72 times, KMDUSD closed higher 54.17% 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 54.17% with an average market move of 10.35%.
With six out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are BCHUSD gaining 3.73% and EOSUSD closing 3.16% higher. On the flipside the worst performer has been XRPUSD closing -0.14% lower. Looking at the other Minor Cryptocurrencies, the winners of the day have been XLMUSD surging 8.52% and VETBTC closing 6.78% higher. The worst performers of the day have been KMDBTC tanking -9.82% and BATBTC closing -3.53% lower. Read more