Technical Analysis - NIX Platform
NIX/USD - 12/10/2019
As shown above, we will be analyzing the technical status of NIX against USD.
We will be asking a series of questions to determine a reasonable conclusion:
What is the current market structure?
What we see right now is a round bottom formation. Breaking below the horizontal support and then slowly rising until an impulse breakout. These rounded bottom formations tend to re-test the breakout-line before a trend-continuation. Currently, it seems like the retrace for the re-test has started already.
To what levels can this retrace lead?
We do not trust our crystal ball; hence, we have to take further factors and indicators into account, before making any statements. First, we look at the area from which the impulse move started - this is the area between $0.056-$0.059. This is the area, which is most likely to be re-tested again. To confirm this theory we use the Fibonacci tool to check if we get any confluence, and indeed, the mentioned area aligns almost perfectly with the 61.8% Fibonacci Level - a Level most commonly known for bounces and trend-continuations.
Is a retrace even viable at this point, or can the price continue before that?
That is a very interesting question, especially having a very bullish look on some High-Cap USD pairs. Nevertheless, the positive correlation doesn’t seem to be as high on this pair. NIX has wicked down to the 38.2% fib level and bounced so far from there, creating a daily bull-hammer. Yet this formation occurring at the “top” of a swing, has the highest rate of failure. Moreover, taking a look at the Stochastic Indicator, we can see a cross-down after an impulse-move from oversold conditions, which further supports the narrative of a retrace.
Overall, NIX is looking stable and like it has good enough chances to continue the up-trend after a healthy retrace. The retrace being the key-point and the most likely short-term scenario, NIX/USD is definitely to be put on the watchlist and to be looked at whenever we get to the mentioned levels above.
This Technical Analysis is made by Kong Trading. The provided Analysis should not be considered financial advice!