STRATUSD pops to highest close since March 7th
Stratis/US Dollar Index (STRATUSD) Technical Analysis Report for May 23, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, STRATUSD finished Saturday at 0.34 gaining $0.01 (3.03%). Today's close at 0.34 marks the highest recorded closing price since March 7th. Trading up to $0.01 lower after the open, Strat managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on February 29th, STRATUSD actually lost -5.41% on the following trading day. 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 May 23, 2020):
Saturday's trading range has been $0.02 (6.06%), 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 STRATUSD.
Crossing above the upper Bollinger Band for the first time since April 24th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 0.31 or signal the beginning of a strong momentum breakout leading to even higher prices.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the nearby swing high at 0.34 where further buy stops could get triggered. As prices are trading close to May's high at 0.35, upside momentum might accelerate should the cryptocurrency mark new highs for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the upper Bollinger Band" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for STRAT/USD. Out of 33 times, STRATUSD closed lower 54.55% 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 nine trading days, showing a win rate of 60.61% with an average market move of -0.85%.
With five out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are EOSUSD losing -1.16% and LTCUSD closing -0.81% lower. On the flipside the best performers have been ETCUSD closing 1.55% higher and BTCUSD gaining 0.23%. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 10.84% and XVGUSD closing 5.05% higher. The worst performers of the day have been HSRBTC tanking -9.88% and ARDRBTC closing -9.27% lower. Read more