Technical Analysis - Nexus Earth
NXS/BTC - 12/04/2019
As shown above, we will be analyzing the technical status of Nexus against Bitcoin.
We will be asking a series of questions to determine a reasonable conclusion:
What is the current market structure?
Currently, we can see very good support and resistance flip after a locally exhausted downtrend. This downtrend broke to the upside with a very clear impulse move and a very high wick, which is not the worst sign, yet something to look out for. Seeing such a big wick and yet small body, an experienced trader would treat this pair with caution and keep the key-area of support written down.
What is supporting the idea of a direct continuation?
First of all, the local downtrend broke upwards violently and has now many eyes on this pair locked in. A continuation from the spot is undoubtedly a possibility, yet nothing to be betting on. The huge wick to the upside shows some signs of the sellers still being very active and reminding buyers to show some real strength. It looks more like the next few days might go slowly downwards as a test of the sellers if buyers are stepping in or not. Should buyers appear and continue this breakout and turn it into a new trend, NXS is definitely on a mission to reclaim previous key-levels.
Are indicators supporting the idea of a trend-change and bullish continuation?
The TJ-Index is currently still in a downtrend and showing 5 out of 15 points. This rather low level is already a good sign, but not a very high alert area for a possible reversal. This being said, there is still some room to the downside, despite the impulse move we saw recently. The MKAST Algorithm is still showing a Sell-Signal, which can only underline what we have elaborated above. Just as on the TJ-Index, all Buying conditions have been met yet, which leaves us with the Sell-Signal. Nevertheless, this does not mean that selling these levels is a good idea.
Overall, NXS just exited a locally exhausted downtrend and made a beautiful impulse move from the key-area of support, which is a sign to start looking for entries. Only as elaborated in the Indicator section, this is not a direct signal to FOMO into
This Technical Analysis is made by Kong Trading. The provided Analysis should not be considered financial advice!