STRATUSD finds support at 50-day moving average
Stratis/US Dollar Index (STRATUSD) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
STRATUSD finished Tuesday at 0.54 losing $0.02 (-3.57%).
Daily Candlestick Chart (STRATUSD as at Aug 04, 2020):
Tuesday's trading range has been $0.03 (5.36%), that's below the last trading month's daily average range of $0.06. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for STRATUSD.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and two bearish patterns, the Bearish Short Candle and the Black Candle. The last time a Bullish Hikkake Pattern showed up on July 12th, STRATUSD actually lost -9.52% on the following trading day.
After trading as low as 0.53 during the day, the cryptocurrency found support at the 50-day moving average at 0.54. Prices broke below the key technical support level at 0.55 (now R1), which is likely to act as resistance going forward.
While Strat is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might speed up should prices move above the close-by swing high at 0.59 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 0.51 where further sell stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 50" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for STRAT/USD. Out of 36 times, STRATUSD closed lower 55.56% 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 66.67% with an average market move of -6.16%.
With six out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are BCHUSD losing -2.99% and XRPUSD closing -2.84% lower. On the flipside the best performer has been ETHUSD closing 0.96% higher. Looking at the other Minor Cryptocurrencies, the winners of the day have been VETBTC surging 12.84% and QTUMUSD closing 9.2% higher. The worst performers of the day have been STRATBTC tanking -4.0% and WAVESUSD closing -2.96% lower. Read more