STRATUSD breaks back above 20-day moving average
Stratis/US Dollar Index (STRATUSD) Technical Analysis Report for Nov 09, 2019 | by Techniquant Editorial Team
STRATUSD finished Saturday at 0.32 gaining $0.01 (3.23%). Trading up to $0.01 lower after the open, STRAT/USD managed to reverse during the session as bulls took control ending the day above its opening price. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (STRATUSD as at Nov 09, 2019):
Saturday's trading range has been $0.02 (6.45%), that's slightly below the last trading month's daily average range of $0.02. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for STRATUSD.
In spite of a weak opening Stratis managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the Tweezer Bottom. The last time a Tweezer Bottom showed up on October 24th, STRATUSD gained 3.45% on the following trading day.
The cryptocurrency managed to close back above the 20-day moving average at 0.32. After having been unable to move lower than 0.30 in the prior session, the market found buyers again around the same price level today at 0.30.
Although Strat is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Selling might speed up should prices move below the nearby swing low at 0.30 where further sell stops could get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for STRAT/USD. Out of 52 times, STRATUSD closed lower 57.69% 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 61.54% with an average market move of -4.96%.
With five out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are LTCUSD gaining 2.57% and BCHUSD closing 1.29% higher. On the flipside the worst performers have been ETCUSD closing -0.8% lower and BTCUSD losing -0.16%. Looking at the other Minor Cryptocurrencies, the winners of the day have been KMDBTC surging 19.83% and KMDUSD closing 19.72% higher. The worst performers of the day have been SCBTC tanking -4.35% and PIVXBTC closing -4.06% lower. Read more