Ethereum Classic Price Analysis: ETC/USD extends the sell-off, $7.00 stays unbroken

Ethereum Classic (ETC) hit the recent recovery high at $7.54 and retreated to $7.11 by the time of writing. The coin has lost over 4% since the …
  • Ethereum Classic (ETC) recovery momentum faded away on approach to $7.50.
  • Critical support is created by a psychological level of $7.00.

Ethereum Classic (ETC) hit the recent recovery high at $7.54 and retreated to $7.11 by the time of writing. The coin has lost over 4% since the beginning of Thursday amid strong bearish momentum triggered mostly by technical factors. ETC/USD faced a stiff resistance on approach to $7.50 that stopped the recovery twice in 2020.

Ethereum Classic is now the 21st-largest digital asset with the current market capitalization of $872 million and an average daily trading volume of $849 million. The coin is moving in sync with the market, despite the retreat, the short-term momentum is bullish, while the volatility is low.

ETC/USD: Technical picture

On the daily charts, ETC/USD recovered above the psychological area of $7.00 reinforced by 200-daily SMA. This barrier stopped the sell-off during early Asian hours, however, the further recovery seems to be limited at this stage as the daily RSI has reversed to the downside from the overbought levels. The local resistance is created by the combination of 50-hour SMA, the middle line of the 1-hour Bollinger Band and the upper line of the daily Bollinger Band at $7.28. A sustainable move above this area is needed for the upside to gain traction with the net focus on the previous local barrier of $7.40 and the recovery high of $7.54.

ETC/USD daily chart

On the downside, the local support is created by the upward-looking 100-hour SMA at $7.09. Once it is broken, the sell-off may be extended to the psychological $7.00. This area has the potential to limit the downside momentum; however, once it is broken, 200-hour SMA at $6.72 will come into focus.

ETC/USD 1-hour chart

Join Buyers As They Return to CrowdStrike Stock

CrowdStrike (NASDAQ:CRWD) stock bulls scored a critical victory by holding their first support test in months. The positive development came as the …

CrowdStrike (NASDAQ:CRWD) stock bulls scored a critical victory by holding their first support test in months. The positive development came as the Nasdaq composite fell prey to profit-taking. As always, the weakness made investors second guess their tech holdings.

Source: VDB Photos / Shutterstock.com

Fortunately, only a few completely abandoned ship. The rest held on, helping CRWD stock and many other momentum names bounce back to avoid breaking below major moving averages.

Today we’re taking a fresh look at CrowdStrike to identify the new price levels that matter moving forward.

CRWD Stock Weekly View

Context matters when analyzing price charts. Without a sense of the big picture, you will read too much into noise, likely overreacting to short-term shifts.

To identify the broader trends driving the behavior of market participants, let’s look at the weekly time frame. Each candle represents an entire week. In other words, five days are compressed into a single candle.

CrowdStrike (CRWD) weekly chart showing successful test of $100.CrowdStrike (CRWD) weekly chart showing successful test of $100.

Source: The thinkorswim® platform from TD Ameritrade

Because CrowdStrike only just went public last June, the story told by the weekly chart is relatively short. Since the March bottom, we’ve seen a nearly four-fold increase in prices. Along the way, CRWD stock smashed every resistance level and burst to a new record of $118.58.

As you’d expect with a stock basking in virgin territory, it sits above all weekly moving averages. In this case, that’s the 20-week and 50-week. The stock isn’t yet old enough to create anything longer.

The pullback from the highs has been orderly and contained so far. Old resistance from last August’s peak has turned into new support, proving that spectators were quick to buy at the first potential buy zone.

It also underscores the psychological significance of whole numbers. It’s not a coincidence that the reversal came into play at $100. While the drop may have appeared dramatic on the daily chart, as far as the bigger picture goes, the past two weeks was nothing more than a garden variety retracement. It allowed overbought pressures to ease and a more sustainable uptrend to emerge.

Had we broken support or had a deeper correction, then more caution would be warranted.

Daily Chart

Drilling down to the daily chart provides more detail surrounding the recent pullback. In fairness to bears, we did close below the 20-day moving average for essentially the first time since the epic ascent began in March. It thus marks this pullback as the most significant one of the trends.

The formation of the lower pivot high last week at $108.50 was also concerning. But here’s where things turn more positive.

CrowdStrike (CRWD) daily chart showing hold of 50-day moving averageCrowdStrike (CRWD) daily chart showing hold of 50-day moving average

Source: The thinkorswim® platform from TD Ameritrade

Monday’s support test held the prior pivot low and the rising 50-day moving average. It enabled the uptrend to remain intact. Volume patterns also suggested the selling lacked conviction. The four consecutive down days carrying us into this week all had below-average participation. We’re talking mild profit-taking, not massive institutional-driven distribution.

The final piece of our bullish argument is this morning’s impressive strength. CrowdStrike is the hottest tech stock on my watchlist, gaining 4.6%. The rally is catapulting it back above the 20-day moving average and to the cusp of an upside breakout. A push above the $108.50 resistance could clear the deck for a run back to its all-time high.

If you want to bet CRWD stock rises back toward $120 in the coming weeks, then bull call spreads offer an attractive risk/reward.

The Trade: Buy the Sep $110/$120 bull call spread for around $3.80.

The initial cost represents the max loss and will be forfeited if CRWD sits below $110 at expiration. To capture the max gain of $6.20, the stock needs to climb above $120.

Tyler Craig is a member of the Chartered Market Technician’s Association and holds the CMT designation. His entire adult life has been dedicated to helping individuals learn how to trade as an elite instructor and personal mentor. To join his team and the best trading community on the planet, click here. At the time of this writing, Tyler didn’t hold positions in any of the aforementioned securities.

Steem, Tron, Litecoin Price Analysis: 27 July

Litecoin, the silver to Bitcoin’s gold, had been trading within a tight channel on the charts for over two months before the aforementioned spike in …

The latest hike in Bitcoin’s price came at a good time for the rest of the altcoin market. While many were under the impression that the same had exhausted all its momentum, Bitcoin’s performance gave fresh impetus to altcoins to rise again. This was the case for alts such as Litecoin and Tron. However, others like Steem didn’t reciprocate this movement.

Litecoin [LTC]

Source: LTC/USD on TradingView

Litecoin, the silver to Bitcoin’s gold, had been trading within a tight channel on the charts for over two months before the aforementioned spike in Bitcoin’s price pushed LTC to highs unseen since the first week of May. In fact, so significant was Litecoin’s hike that it climbed by over 17% on the charts over the last week.

The crypto’s technical indicators highlighted the scale of the appreciation as while the MACD line was well over the Signal line on the charts, the Parabolic SAR’s dotted markers were places well below the price candles and implied a great degree of bullishness in the market.

Even on the development side, LTC has done well for itself. Just a few days ago, it was revealed that FINRA had approved Grayscale’s Litecoin Trust for public quotation. This was followed by news that Anchorage had added support for the altcoin.

Tron [TRX]

Source: TRX/USD on TradingView

TRON, the 16th-ranked cryptocurrency on CoinMarketCap’s charts, is no longer in the top-10 as it once was. In fact, over the past few months, it has been overtaken by the likes of Cardano, Chainlink, Tezos, and even Crypto.com Coin. However, like Litecoin, TRON too was quick to follow Bitcoin’s lead after it posted gains of its own. While TRX had gained by over 9% over the last few days, at the time of writing, the crypto was registering corrections on the charts.

In the long-run, it’s unclear whether such movement will account for much, however, as it is just the latest in a series of hikes that have punctuated TRX’s charts over the last few months.

The aforementioned corrections on TRX’s charts were noted by the crypto’s technical indicators as while the mouth of the Bollinger Bands was contracting to reveal falling price volatility, the Relative Strength Index noted a gradual fall from the overbought zone.

TRON was in the news recently after Justin Sun announced that the Foundation will be withdrawing the bounty it had initially offered for anyone who would help find the perpetrators of the Twitter hack.

STEEM

Source: STEEM/USD on TradingView

STEEM, the crypto native to the Steemit blockchain, has had a very controversial 2020, with the crypto in the news a lot a few months ago. In fact, STEEM made waves in May after it was revealed that Steemit, recently acquired by Tron’s Justin Sun, will be confiscating the accounts of dissident validators a few weeks after a hardfork gave birth to HIVE.

Unlike Tron and Litecoin, however, STEEM noted corrections over the last week, despite the rest of the market surging dramatically on the back of Bitcoin’s hike. In fact, STEEM was down by over 7.5% over the week.

The Awesome Oscillator pictured minimal momentum in the crypto-market, while the Chaikin Money Flow was holding steady above zero, suggesting that capital inflows still were greater than capital outflows.

Direct Line Insurance Group Plc (DLG.L) Stock Turns -2.8% Lower For Week

Shares of Direct Line Insurance Group Plc (DLG.L) have been trending lower over the past five bars, revealing bearish momentum for the shares, …

Shares of Direct Line Insurance Group Plc (DLG.L) have been trending lower over the past five bars, revealing bearish momentum for the shares, as they ran -2.8% for the week. Looking further out we note that the shares have moved -0.95% over the past 4-weeks, 8.15% over the past half year and 9.12% over the past full year.

It is no secret that most investors have the best of intentions when diving into the equity markets. Making sound, informed decisions can help the investor make the most progress when dealing with the markets. Often times, investors may think they have everything in order, but they still come out on the losing end. Investors may need to figure out ways to keep emotion out of stock picking. Sometimes trading on emotions can lead to poor results. Making hasty decisions and not paying attention to the correct data can lead to poor performing portfolios in the long-term.

We can also take a look at the Average Directional Index or ADX of Direct Line Insurance Group Plc (DLG.L). The ADX is used to measure trend strength. ADX calculations are made based on the moving average price range expansion over a specified amount of time. ADX is charted as a line with values ranging from 0 to 100. The indicator is non-directional meaning that it gauges trend strength whether the stock price is trending higher or lower. The 14-day ADX presently sits at 14.45. In general, and ADX value from 0-25 would represent an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would indicate a very strong trend, and a value of 75-100 would signify an extremely strong trend. At the time of writing, Direct Line Insurance Group Plc (DLG.L) has a 14-day Commodity Channel Index (CCI) of 46.59. Developed by Donald Lambert, the CCI is a versatile tool that may be used to help spot an emerging trend or provide warning of extreme conditions. CCI generally measures the current price relative to the average price level over a specific time period. CCI is relatively high when prices are much higher than average, and relatively low when prices are much lower than the average.

Direct Line Insurance Group Plc (DLG.L) currently has a 14 day Williams %R of -18.79. In general, if the level goes above -20, the stock may be considered to be overbought. Alternately, if the indicator goes under -80, this may signal that the stock is oversold. The Williams Percent Range or Williams %R is a technical indicator that was developed to measure overbought and oversold market conditions. The Williams %R indicator helps show the relative situation of the current price close to the period being observed.

A commonly used tool among technical stock analysts is the moving average. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a certain period of time. Moving averages can be very helpful for identifying peaks and troughs. They may also be used to assist the trader figure out proper support and resistance levels for the stock. Currently, the 200-day MA for Direct Line Insurance Group Plc (DLG.L) is sitting at 293.04. The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of stock price movements. The RSI was developed by J. Welles Wilder, and it oscillates between 0 and 100. Generally, the RSI is considered to be oversold when it falls below 30 and overbought when it heads above 70. RSI can be used to detect general trends as well as finding divergences and failure swings. The 14-day RSI is presently standing at 59.81, the 7-day is 58.93, and the 3-day is resting at 30.84.

Investors looking to chalk up healthy returns in the stock market may need to pay attention to avoid common pitfalls. When the good times are rolling, investors may be highly tempted to move a lot of money into certain stocks that have been churning out returns. One problem with this approach is that a stock that has been hot for a few months might not be hot over the next three months. It is always important to remember that past performance does not guarantee future results. Getting into a stock too late may leave the average investor pounding the table as a former winner turns into a current loser.

WisdomTree Commodity Securities Ltd WisdomTree Natural Gas (NGAS.L) Bulls Drive the Shares …

WisdomTree Commodity Securities Ltd WisdomTree Natural Gas (NGAS.L) shares are showing positive signals short-term as the stock has finished …

WisdomTree Commodity Securities Ltd WisdomTree Natural Gas (NGAS.L) shares are showing positive signals short-term as the stock has finished higher by 0.0005% for the week. In taking a look at recent performance, we can see that shares have moved 3.91% over the past 4-weeks, 15.65% over the past half year and -10.74% over the past full year.

Investors might be looking to sharpen the gaze and focus on recent market action. As we move into the second part of the year, everyone will be watching to see which way the stock market momentum shifts. Many believe that the bulls are still charging while others feel like the bears may be waiting in the wings. There are various schools of thought when it comes to trading stocks. Investors may have to first asses their appetite for risk in order to start creating a solid investment plan.

Currently, WisdomTree Commodity Securities Ltd WisdomTree Natural Gas (NGAS.L) has a 14-day Commodity Channel Index (CCI) of 31.71. The CCI technical indicator can be employed to help figure out if a stock is overbought or oversold. CCI may also be used to aid in the discovery of divergences that could possibly signal reversal moves. A CCI closer to +100 may provide an overbought signal, and a CCI near -100 may offer an oversold signal.

Tracking other technical indicators, the 14-day RSI is presently standing at 52.60, the 7-day sits at 60.27, and the 3-day is resting at 78.85 for WisdomTree Commodity Securities Ltd WisdomTree Natural Gas (NGAS.L). The Relative Strength Index (RSI) is a highly popular technical indicator. The RSI is computed base on the speed and direction of a stock’s price movement. The RSI is considered to be an internal strength indicator, not to be confused with relative strength which is compared to other stocks and indices. The RSI value will always move between 0 and 100. One of the most popular time frames using RSI is the 14-day.

Moving averages have the ability to be used as a powerful indicator for technical stock analysis. Following multiple time frames using moving averages can help investors figure out where the stock has been and help determine where it may be possibly going. The simple moving average is a mathematical calculation that takes the average price (mean) for a given amount of time. Currently, the 7-day moving average is sitting at 0.0126.

Let’s take a further look at the Average Directional Index or ADX. The ADX measures the strength or weakness of a particular trend. Investors and traders may be looking to figure out if a stock is trending before employing a specific trading strategy. The ADX is typically used along with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) which point to the direction of the trend. The 14-day ADX for WisdomTree Commodity Securities Ltd WisdomTree Natural Gas (NGAS.L) is currently at 14.59. In general, and ADX value from 0-25 would represent an absent or weak trend. A value of 25-50 would support a strong trend. A value of 50-75 would signify a very strong trend, and a value of 75-100 would point to an extremely strong trend.

Some stock market investors may abide to the saying, nothing ventured nothing gained. Others may operate by following the saying slow and steady wins the race. The correct move for one investor may not be the same for another. Some may choose to go all in, while others may look to reduce risk with stable long-term staple companies. Active equity investors may be forced to make hard decisions at some point, but working hard and being prepared may prove to be a portfolio booster. Dedicated investors are often willing to put in the extra hours in order to make sure no stone is left unturned.