KMDUSD finds buyers around 0.52 for the forth day in a row
Komodo/US Dollar Index (KMDUSD) Technical Analysis Report for Oct 18, 2020 | by Techniquant Editorial Team
KMDUSD ended Sunday at 0.53 gaining $0.01 (1.92%).
Daily Candlestick Chart (KMDUSD as at Oct 18, 2020):
Sunday's trading range has been $0.02 (3.85%), that's slightly below the last trading month's daily average range of $0.02. 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 KMDUSD.
In spite of a weak opening the cryptocurrency managed to close above the prior day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on October 8th, KMDUSD gained 3.70% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the Tweezer Bottom.
KMD was bought again around 0.52 after having seen lows at 0.52, 0.52 and 0.52 in the last three trading sessions. Obviously there is something going on at that level.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 0.51 where further sell stops might get activated. As prices are trading close to October's low at 0.51, downside momentum could speed up should KMD/USD mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for KMD/USD. Out of 498 times, KMDUSD closed higher 46.18% 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 47.79% with an average market move of 3.97%.
With six out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 2.69% and BCHUSD closing 1.76% higher. On the flipside the worst performer has been ETCUSD closing -0.36% lower. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 13.16% and VETBTC closing 5.15% higher. The worst performers of the day have been WAVESBTC tanking -5.27% and WAVESUSD closing -4.08% lower. Read more