Hello friends welcome to the new update on Monero this week was very important for XMR as has tried to breakout the very important resistance level of $70. In today’s article we will try to watch this move of Monero and we will also take a look at pennant formed by price action and we will try to know the position of the different simple moving averages with exponential moving averages as well. And we will also take a look at very big wedge pattern and a very big harmonic move as well that can lead the price action strong bullish for long term.
Support and resistance levels:
The priceline of Monera is at very strong resistance level at $70. In my previously the price action crossed up the $60 resistance. At this cross I just predicted that a price action will retest this resistance level as support and after that it will move up to next resistance level at $70. And now finally priceline has attempted to breakout next resistance of $70 and moving down.
A bullish pennant:
On the daily chart the price action has formed a pennant and it is moving within this pattern since 29 April 2020. And so far the price action is not able to breakout from this pennant even after the several attempts. And this week we have seen the strongest attempt by the price action of XMR to break out the resistance of this pennant.
If we watch the position of the exponential moving averages with the time period of 10 and 21 on this daily chart. Then we can see since price action has started the bullish rally after the mid of March and the price action crossed up these two EMAs then EMAs have formed a golden cross on April 4 and after this golden cross they never formed any bear cross or death cross so far. Once in the last week of May 2020, they came very close to each other and likely to form the bear cross or death cross but again the EMA 10 moved up and lifted the price action more up to the resistance of the pennant.
Simple moving averages:
I have placed simple moving averages with the time period of a 25, 50, 100 and on the daily chart. And the price action has broken out all these SMAs and finally when the price action crossed up 100 simple moving average then it retested the previous MAs as support and moved up. At this time the price action is at the support of 25 SMA. This is a smallest simple moving average and it is above all other simple moving averages. And we have 100 simple moving average below all the simple moving averages once the 200 simple moving average will become below all the moving averages then a complete opened alligator mouth will be formed by the simple moving averages that can lead the price action more bullish.
Wedge pattern formation:
Now let’s switch to long term weekly chart and here the price action is moving in a wedge. And after having a strong bounce from the support it is moving upward to hit the resistance of wedge. At this time this resistance is at almost $88. I have also placed the bollinger bands on this chart. And it can be observed that the bollinger bands is below the resistance. Therefore we have another resistance before the distance of the pennant that will be hurdle for the price action to reach up to the resistance level. However it possible that with the movement of the price action the bollinger bands will also start moving up and eventually it will be moved outside the resistance.
The big harmonic move and conclusion:
On monthly chart the price action of XMR has formed is very big bullish BAT pattern.
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And after the completion of this harmonic move the price action has entered in the potential reversal zone. At this time it is moving sideways in this PRZ level. Now as per Fibonacci sequence of bullish BAT pattern the price action is supposed to move up from here at least up to 0.382 to 0.786 Fibonacci projection and this is the projection of A toD leg of this pattern. So its mean that this pattern has the potential to produce more than 500% profit. However I am expecting if the price action will be able to cross up the 0.786 projection then it will turn more bullish for the long term to achieve highest price ever in the history of Monero.
