XEMUSD finds buyers at key support level
XEM/US Dollar Index (XEMUSD) Technical Analysis Report for Nov 21, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, XEMUSD ended Saturday at 0.1311 gaining $0.0079 (6.41%). Trading up to $0.0079 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Friday's high at 0.1243, the cryptocurrency confirmed its breakout through the previous session high after trading up to $0.0132 above it intraday.
Daily Candlestick Chart (XEMUSD as at Nov 21, 2020):
Saturday's trading range has been $0.0222 (18.02%), that's far above the last trading month's daily average range of $0.0143. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for XEMUSD.
After trading down to 0.1153 earlier during the day, NEM bounced off the key technical support level at 0.1193 (S2). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on November 13th, XEMUSD gained 1.39% on the following trading day. Prices are trading close to the key technical resistance level at 0.1398 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for XEM/USD. Out of 197 times, XEMUSD closed lower 62.44% of the time on the next trading day after the market condition occurred.