XEMUSD finds buyers at key support level
XEM/US Dollar Index (XEMUSD) Technical Analysis Report for Nov 22, 2020 | by Techniquant Editorial Team
XEMUSD ended Sunday at 0.1302 losing $0.0009 (-0.69%). Trading $0.0186 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 Thursday, XEMUSD actually gained 6.48% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (XEMUSD as at Nov 22, 2020):
Sunday's trading range has been $0.0242 (18.46%), that's far above the last trading month's daily average range of $0.0153. 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 XEMUSD.
Four candlestick patterns are matching today's price action, the Gravestone Doji, the Northern Doji and the Shooting Star which are known as bearish patterns and one neutral pattern, the Doji.
After trading down to 0.1255 earlier during the day, the market bounced off the key technical support level at 0.1293 (S1). The failure to close below the support might increase that levels significance as support going forward. Unable to break through the key technical resistance level at 0.1398 (R1), XEM/USD closed below it after spiking up to 0.1497 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Northern Doji" stand out. Its common bearish interpretation has been confirmed for XEM/USD. Out of 25 times, XEMUSD closed lower 52.00% 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 68.00% with an average market move of -4.72%.