QTUMUSD surges, gaining $0.34 (14.41%) within a single day
QTUM/US Dollar Index (QTUMUSD) Technical Analysis Report for Nov 21, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, QTUMUSD ended Saturday at 2.70 surging $0.34 (14.41%). This is the biggest single-day gain in over three months. Today's close at 2.70 marks the highest recorded closing price since September 18th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 2.48, the market confirmed its breakout through the previous session high after trading up to $0.23 above it intraday.
Daily Candlestick Chart (QTUMUSD as at Nov 21, 2020):
Saturday's trading range has been $0.35 (14.83%), that's far above the last trading month's daily average range of $0.15. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for QTUMUSD.
One bullish candlestick pattern matches today's price action, the White Candle.
QTUM/USD managed to close above the 100-day moving average at 2.53 for the first time since September 20th. When this moving average was crossed above the last time on September 17th, QTUMUSD gained 8.95% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 2.08.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) above 70" stand out. Its common bearish interpretation has been confirmed for QTUM/USD. Out of 16 times, QTUMUSD closed lower 68.75% 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 three trading days, showing a win rate of 68.75% with an average market move of -5.63%.