WAVESUSD closes below its opening price unable to hold early session gains
Waves/US Dollar Index (WAVESUSD) Technical Analysis Report for Oct 18, 2020 | by Techniquant Editorial Team
WAVESUSD finished Sunday at 3.06 losing $0.13 (-4.08%). Trading $0.09 higher after the open, the cryptocurrency was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on October 5th, WAVESUSD lost -8.05% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (WAVESUSD as at Oct 18, 2020):
Sunday's trading range has been $0.24 (7.52%), that's slightly above the last trading month's daily average range of $0.21. 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 WAVESUSD.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 3.14 (now R1), which is likely to act as resistance going forward.
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 although could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 2.53.
Waves shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for WAVES/USD. Out of 77 times, WAVESUSD closed higher 51.95% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 63.64% with an average market move of 23.01%.
With six out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 2.69% and BCHUSD closing 1.76% higher. On the flipside the worst performer has been ETCUSD closing -0.36% lower. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 13.16% and VETBTC closing 5.15% higher. The worst performers of the day have been WAVESBTC tanking -5.27% and XLMBTC closing -3.89% lower. Read more