WAVESUSD pops to highest close since May 2nd
Waves/US Dollar Index (WAVESUSD) Technical Analysis Report for May 23, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, WAVESUSD finished Saturday at 1.08 gaining $0.02 (1.89%). Today's close at 1.08 marks the highest recorded closing price since May 2nd. Trading up to $0.03 lower after the open, Waves managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (WAVESUSD as at May 23, 2020):
Saturday's trading range has been $0.07 (6.6%), that's slightly below the last trading month's daily average range of $0.13. 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 WAVESUSD. Prices continued to consolidate within a tight trading range between 0.99 and 1.16 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern.
The cryptocurrency managed to close above the 100-day moving average at 1.07 for the first time since May 2nd. After having been unable to move above 1.09 in the previous session, WAVES/USD ran into sellers again around the same price level today, failing to move higher than 1.10. The last time this happened on Wednesday, WAVESUSD lost -2.86% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the close-by swing high at 1.16 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 0.99 where further sell stops might get activated. As prices are trading close to May's high at 1.17, upside momentum could speed up should the market mark new highs for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bearish for WAVES/USD. Out of 326 times, WAVESUSD closed lower 52.15% 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 60.74% with an average market move of -2.35%.
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