KMDUSD breaks below key technical support level
Komodo/US Dollar Index (KMDUSD) Technical Analysis Report for Nov 21, 2019 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, KMDUSD finished Thursday at 0.71 losing $0.07 (-8.97%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Wednesday's low at 0.77, the cryptocurrency confirmed its breakout through the previous session low after trading up to $0.08 below it intraday.
Daily Candlestick Chart (KMDUSD as at Nov 21, 2019):
Thursday's trading range has been $0.09 (11.54%), that's slightly below the last trading month's daily average range of $0.10. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for KMDUSD.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 0.68 (S1). Prices broke below the key technical support level at 0.77 (now R1), which is likely to act as resistance going forward. The last time this happened on November 7th, KMDUSD actually gained 1.43% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Its common bearish interpretation has been confirmed for KMD/USD. Out of 111 times, KMDUSD closed lower 47.75% 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 61.26% with an average market move of -0.33%.
With seven out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are EOSUSD losing -8.74% and ETHUSD closing -8.11% lower. None of the markets managed to end the day in the green. Looking at the other Minor Cryptocurrencies, the winners of the day have been XRPBTC surging 3.14% and ETCBTC closing 2.24% higher. The worst performers of the day have been ETHCNY tanking -11.28% and LTCCNY closing -11.12% lower. Read more