XEMUSD snaps to lowest close since October 24th
XEM/US Dollar Index (XEMUSD) Technical Analysis Report for Nov 09, 2019 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, XEMUSD ended Saturday at 0.0393 edging lower $0.0001 (-0.25%) on low volume. Today's close at 0.0393 marks the lowest recorded closing price since October 24th. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (XEMUSD as at Nov 09, 2019):
Saturday's trading range has been $0.0007 (1.79%), that's far below the last trading month's daily average range of $0.0021. 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 XEMUSD.
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.
Prices are trading close to the key technical support level at 0.0389 (S1). After having been unable to move lower than 0.0389 in the previous session, the market found buyers again around the same price level today at 0.0390. The last time this happened on Tuesday, XEMUSD actually lost -0.23% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 0.0389 where further sell stops could get activated. Further selling might move prices lower should the market test October's close-by low at 0.0356.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for XEM/USD. Out of 25 times, XEMUSD closed higher 72.00% 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 nine trading days, showing a win rate of 48.00% with an average market move of 2.86%.
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