Nifty outlook and stock pick by Tradebulls Securities: Buy Divi’s Lab

Breach and sustenance below 890-895 support zones indicate the stock might continue its downward momentum targeting its recent swing low …

The Nifty gave up all the gains of the previous trading session, and displayed persistent selling pressure after closing at day’s low. Occurrence of “Bullish Hammer” followed by “Bullish Engulfing” indicates continued short covering at lower levels. Unless the index breaches the 100 WEMA (10,790) possibility of short covering move with a target of recent swing high of 11,150 is a likely scenario as most oscillators rest in their respective oversold zone. Only a move surpassing 200 DEMA (11,280) would indicate a short term bottom in place while 100 WEMA (10,790) is expected to act as strong downside support for the index in coming sessions. With the occurrence of two consecutive bullish formations, along with RSI surpassing its signal line, short-term traders can initiate longs with a stop placed below recent swing low of 10,782 for a continuation of short covering move targeting 11,150 & 11,230 in coming sessions.

STOCK: CENTURY TEXTILE AND INDUSTRIES LTD

RECO: SELL

CMP: Rs 886

The formation of “Gravestone Doji” on the daily scale along unsuccessful attempt at breaching above its 20 DEMA indicates recent rally is being a dead cat bounce for the stock. Breach and sustenance below 890-895 support zones indicate the stock might continue its downward momentum targeting its recent swing low around 840 levels and a possible breach of 830 levels. The stock can be sold with stop placed above “Gravestone Doji” high of 912 levels for a retest of recent swing low of 842 and possible breach targeting 830 levels.

STOCK: DIVI’S LAB

RECO: BUY

CMP : Rs 1,638.80

The stock witnessed upside momentum post occurrence of “Bullish Engulfing” formation on similar lines witnessed on 9th of July. Stock held firm around the 1,570 support levels forming an interim “double bottom” suggesting the move could head further targeting its recent swing high of 1,678 and a possible breach aiming at new life highs. The stock can be bought with a stop placed below recent swing low of 1,568 for 1,678 and a possible new life high in coming sessions.


Disclaimer: Analyst may or may not hold positions in one or more stocks

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Bitcoin Needs Weekly Close Above Tough $12K Hurdle to Restart Price Rally

Bitcoin’s bull run from April lows near $4,100 seems to have stalled, with buyers repeatedly failing to keep gains above $12,000 in the last six weeks.

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  • Bitcoin’s bull run from April lows near $4,100 seems to have stalled, with buyers repeatedly failing to keep gains above $12,000 in the last six weeks.
  • A high-volume weekly close (Sunday, UTC) above $12,000 is needed to revive the bull market.
  • A bullish weekly close may remain elusive if the cryptocurrency finds acceptance below $11,200 in the next day or two. That could pave way for a drop to $10,500.

Bitcoin needs to break above stiff resistance at $12,000 to unleash the next phase of the bull market, which began from lows near $4,100 on April 1.

The top cryptocurrency by market value is currently trading at $11,527 on Bitstamp, having fallen back from a one-month high of $12,325 yesterday.

This isn’t the first time BTC has failed to hold on to gains above $12,000. The cryptocurrency jumped to a high of $13,880 on June 26 only to fall back below $12,000 on the following day. Similar price action was seen in the following two weeks. Notably, prices rose to $13,200 on July 10, only to fall back below $10,000 the following day.

Currently, the bull market looks to have stalled, with $12,000 resistance acting as a ceiling to further gains, as seen below.

Weekly chart

Bitcoin broke into a bull market with a convincing move to $5,000 in April and rose to a high of $13,880 on June 26.

The cryptocurrency, however, did not find sustained acceptance above $12,000 in either the last week of June or the first two weeks of July.

The repeated failure to close above $12,000 indicates a weakening of bull momentum and has established the psychological level as the resistance to beat for the bulls.

So, a high-volume weekly close above $12,000 is needed to signal a continuation of the rally from April lows near $4,100 and open the doors to resistances at $15,000 and $17,235 (January 2018 high).

The odds of BTC closing this week (Sunday, UTC) above $12,000 would drop if prices slip below key support at $11,200 in the next day or two.

Daily chart

BTC fell 2.8 percent yesterday, snapping its seven-day winning streak.

More importantly, the cryptocurrency failed to close above the upper edge of the falling channel on the daily chart and created a candle with a long upper shadow – another sign of buyer exhaustion above $12,000.

That candle would gain credence and the outlook would turn bearish if prices close below $11,200 (Tuesday’s low).

3-day chart

A close above $12,060 today would confirm a bull flag breakout on the 3-day chart. A bull flag breakout is a continuation pattern that usually accelerates the preceding rally.

If confirmed, a breakout would potentially open the doors to fresh record highs above $20,000 (target as per the measured move method).

That said, a weekly close above $12,000 would be a stronger confirmation of the revival of the bull market.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; charts by Trading View

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Bitcoin Price Under $12K But Analyst Says Being Bearish ‘Riskier’ Now

While weekly gains for Bitcoin remain strong at 18.5%, analysts were keen to note the drop below the $12,000 barrier did not constitute a return to …

Bitcoin (BTC) price was hovering closer to $11,500 on Aug. 7 as analysts brushed off concerns of a fresh downward move.

Market visualization

Market visualization. Source: Coin360

Bitcoin price experiences another healthy correction

Data from Coin360 showed BTC/USD trading at $11,630 as of press time, capping 24-hour losses of 4.5%.

The correction follows several days of bullish price action for the pair, which culminated in fresh local highs over $12,300 on Tuesday.

Bitcoin 7-day price chart

Bitcoin 7-day price chart. Source: Coin360

While weekly gains for Bitcoin remain strong at 18.5%, analysts were keen to note the drop below the $12,000 barrier did not constitute a return to bearish sentiment.

“As long as price holds above $11000, I’m not really that concerned about revisiting $9ks again or lower. It’s far riskier being bearish at this point in time,” regular trader Josh Rager summarized on social media Wednesday.

As Cointelegraph reported, the impetus for Bitcoin’s latest surge likely lies in macro trends focused on the trade war between the United States and China, along with unrest in Hong Kong.

Rager noted such events represented an opportunity to buy up more BTC now, as the initial boost temporarily faded to bring the price lower.

Altcoins produce familiar mimicry

Despite ongoing rumors about a fresh hack of major exchange Binance, it was unclear at press time whether concerns were translating into extra downward pressure on cryptocurrency markets.

Altcoins were thus left broadly copying Bitcoin’s behavior, with most of the top twenty tokens by market cap shedding 2% and 6%.

Ether 7-day price chart

Ether 7-day price chart. Source: Coin360

Ether (ETH), the largest altcoin by market cap, was trading 3.6% lower on the day at $227.

The total cryptocurrency market cap was still over $300 billion Wednesday, with Bitcoin’s share circling multi-year highs at 68.2%.

Keep track of top crypto markets in real time here

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Litecoin Price Analysis LTC / USD: Gathering Forces

Litecoin has a bearish short-term bias, with the LTC / USD pair once again rejected from its 200-period moving average on the four-hour time frame …
  • Litecoin has a bearish short-term bias, with the LTC / USD pair once again rejected from its 200-period moving average on the four-hour time frame
  • The four-hour time frame shows that the LTC / USD pair is still trapped within a neutral triangle pattern
  • The LTC / USD pair has a bullish medium-term outlook, with price holding firm above its 200-day moving average

Litecoin / USD Short-term price analysis

Litecoin has a bearish short-term bias, with the LTC / USD pair once again strongly rejected from its 200-period moving average on the four-hour time frame.

The four-hour time frame is showing that the LTC / USD pair remains trapped within a triangle pattern, as the fifth-largest cryptocurrency by market capitalization struggles to find direction.

Key technical resistance on the four-hour time frame is located at the $117.00, $127.00 and $140.00 levels.

SIMETRI ResearchSIMETRI Research

Technical indicators on the four-hour time frame remain bullish, although downside pressure is starting to build.

LTC H4 Chart August 6 by TradingViewLTC H4 Chart August 6 by TradingView
LTC / USD H4 Chart by TradingView

Pattern Watch

Traders should note that the $77.00 level may come into focus if a bearish breakout from the triangle pattern occurs.

Relative Strength Index

The Relative Strength Index on the four-hour time frame remains technically bullish, although downside pressure is building.

MACD Indicator

The MACD indicator is bullish on the four-hour time frame and is currently issuing a weak buy signal.


Litecoin / USD Medium-term price analysis

Litecoin has a bullish medium-term trading bias, with the cryptocurrency still holding price above its key 200-day moving average.

The daily time frame shows that the LTC / USD pair is once again trading below the neckline of a bearish head and shoulders pattern, following a false upside breakout.

Key technical support on the daily time frame for the LTC / USD pair remains at the $66.00 and $60.00 levels.

Technical indicators on the daily time frame currently have a slight bullish bias.

LTC Daily Chart August 6 by TradingViewLTC Daily Chart August 6 by TradingView
LTC / USD Daily Chart by TradingView

Pattern Watch

An inverted head and shoulders pattern could start to form if LTC / USD bulls negate the bearish pattern currently in play across the daily time frame.

Relative Strength Index

The Relative Strength Index is rising on the daily time frame, although it has yet to break above neutral.

MACD Indicator

The MACD indicator is bullish on the daily time frame, with both the MACD indicator and signal line rising.


Conclusion

Litecoin is on track for a major technical breakout according to the narrowing triangle pattern across the four-hour time horizons.

If bulls can force an upside breakout, the LTC / USD pair could surge towards the $140.00 level and form a large bullish pattern on the daily time frame.

Check out our coin guide for an introduction to Litecoin.

We also wrote a DARE for the project, analyzing the future prospects of the Bitcoin competitor.

Litecoin Chart

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Bitcoin (BTC) rate breaks the $ 12000, trade war can accelerate rise

We also see that litecoin (LTC) is getting ever closer to number 4, bitcoin cash (BCH). LTC’s market capitalization is only $ 50 million lower than that of …
Use of Bitcoin (BTC) network is approaching all-time high

Bitcoin (BTC) again shows a strong increase. The recent bullish movements of the bitcoin rate are, according to some, due to the economic tensions between the United States and China. Nevertheless, analysts remain cautious. For example, analyst Josh Rager expects a pullback.

At the time of writing, the price of bitcoin (BTC) is $ 12,169 according to CoinMarketCap after having increased in value by 4.22% in the last 24 hours. With the altcoins still lagging behind at this moment, bitcoin dominance continues to rise to a level of 68.5%. The bitcoin dominance was so high for the last time in April 2017.

The second-largest cryptocurrency based on market capitalization, ethereum (ETH), is currently worth $ 234.28 after an increase of 1.9%. Ripple (XRP) is still in third place, which after a fall of 0.24% is now worth $ 0.3232. We also see that litecoin (LTC) is getting ever closer to number 4, bitcoin cash (BCH). LTC’s market capitalization is only $ 50 million lower than that of BCH. We may, therefore, see litecoin in fourth place soon!

In recent days, there has been increasing purchasing pressure on the bitcoin (BTC) market. The BTC rate experienced some resistance in the $ 11,500-11,800 area but now seems to break out of it.

The current rally can be considerably strengthened by the possible devaluation of the Yuan in China. That threat has led to an outflow from the fiat currency. Some analysts think that part of that outflow will end up with bitcoin.

Bitcoin is increasingly being used as a potting agent to protect against the economic uncertainties in the world. Now that the trade war between the US and China is in full swing, the outcome of that conflict remains uncertain. Tom Lee from Fundstrat said about the use of bitcoin as protection against such conflicts:

Bitcoin has really been correlated with the dollar for the last few years … This year, bitcoin has moved away from it, because the dollar has fallen and bitcoin has risen. BTC is also negatively correlated with the stock market and positively correlated with gold. I think bitcoin proves to be a hedge against global risks.

Bitcoin rose less than an hour ago by $ 12,000. A nice price move, but still Josh Rager remains cautious. He expects a pullback:

Price cannot continue to rise forever

Expect a possible bitback of the bitcoin price, either at this level or higher than $ 12k

But that does not necessarily mean bearish

It is no more than normal to consolidate and even fall back after a strong movement

I remain bullish unless there is a close below $ 11k

Price can’t push up forever

Expect an eventual pullback from Bitcoin price whether at this level or above $12k

But that doesn’t mean bearish

It’s only natural to consolidate and even retrace after a strong move

I’ll remain bull bias unless a close under $11k

— Josh Rager 📈 (@Josh_Rager) August 5, 2019

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