By yesterday, Peercoin’s early April fall had halved its deficit, retracing through various key levels, before dropping back to a current price of 1.837.
Let’s take a closer look at the latest PPC/USD chart on the four hour timeframe:
I’ve performed the Fibonacci study from the high of April at 2.175 until the month’s low at 1.700.
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“Eventually price retraced back up to the 38.2% Fibonacci level, marked in white, at 1.882, virtually to the pip, with a firm rejection. And it seems as though we’re going to have another test of 38.2% very soon again, but with the Accelerator now red, we may see another rejection as opposed to any break.”
And so it happened, price tested 38.2% at 1.88 on three further occasions. However, by the time of the third test (encircled in white), the Accelerator Oscillator was green, thereby assisting price to break it on the next candle, managing to reach 50% at 1.938, expect there was not enough bull power to go beyond this level – the fact that it closed above the upper Bollinger band didn’t help.
Since the 50% test, price has been slowly ambling towards the 23.6% Fib level, with the last five candles all closing as bear candles. In addition, six of the past eight bars of the Accelerator Oscillator have been red, whilst the Stochastics are also heading south, thus, I expect price to hit 1.813 within the next few candles, where we’ll probably see a feeble reaction, due to the current lack of volume.
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