QTUMUSD unable to break through key resistance level
QTUM/US Dollar Index (QTUMUSD) Technical Analysis Report for Nov 10, 2019 | by Techniquant Editorial Team
QTUMUSD ended Sunday at 2.21 gaining $0.06 (2.79%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (QTUMUSD as at Nov 10, 2019):
Sunday's trading range has been $0.15 (7.01%), that's slightly below the last trading month's daily average range of $0.20. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for QTUMUSD. Prices continued to consolidate within a tight trading range between 2.07 and 2.27 where it has been caught now for the last three trading days.
Even with a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on Wednesday, QTUMUSD lost -3.48% on the following trading day.
Unable to break through the key technical resistance level at 2.26 (R1), QTUM/USD closed below it after spiking up to 2.27 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. After having been unable to move lower than 2.10 in the previous session, Qtum found buyers again around the same price level today at 2.12.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling might accelerate should prices move below the close-by swing low at 2.07 where further sell stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Its common bearish interpretation has been confirmed for QTUM/USD. Out of 36 times, QTUMUSD closed lower 58.33% 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 52.78% with an average market move of -3.08%.
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