Browsed by
Tag: technical

Ethereum Technical Analysis: ETH eyes $500

Ethereum Technical Analysis: ETH eyes $500

  • Ethereum rallied by 10.50% over the last four days.
  • ETH managed to peak above the 50-day SMA this Saturday.

ETH managed to string together four consecutive bullish sessions in its daily chart, rallying by 10.5%. Currently, the smart contract giant is trading for $376.50 and has managed to cross above the 50-day SMA. The bulls now need to consolidate their position above the 50-day SMA to break above this level and aim for the $485 resistance line.

ETH/USD daily chart

ETH/USD daily chart

The bullish outlook is further validated by the MACD, which shows increasing bullish momentum. The bulls will want to ride the wave and aim to re-enter the $500-level for the first time since June 2018. The IOMAP shows that ETH needs to overcome a moderate-to-strong resistance level at $380 before it can begin its charge.

Ethereum IOMAP

fxsoriginal

As per IntoTheBlock’s “In/Out of the Money Around Price” or IOMAP, 1.15 million addresses had previously purchased a little over 2 million ETH at this in the $380-level. The bullish outlook is further validated by Santiment’s holder’s distribution graph, which shows that the whales are currently strengthening their positions, which should spike buying pressure.

Ethereum holders distribution

fxsoriginal

As per the holders distribution chart, the number of addresses holding 100,000-1 million tokens went up by 5 over the last five days. Similarly, the addresses holding 10,000 – 100,000 tokens rose by 9 over the last two days. This is a very positive sign for the second-largest coin by market cap as it shows that the whales are consolidating their positions instead of just dumping their holdings.

Can the bears stage a comeback?

The bears can fight back if the price fails to close above the 50-day SMA. As per the IOMAP, this can trigger a pullback to the $355 support wall. If the bears

Read the rest
The S&P 500 could surge 7% based on this bullish technical analysis pattern, BofA says

The S&P 500 could surge 7% based on this bullish technical analysis pattern, BofA says



a man wearing a suit and tie talking on a cell phone: Traders work on the floor of the NYSE in New York Reuters


© Reuters
Traders work on the floor of the NYSE in New York Reuters

  • A bullish technical analysis pattern suggests that the S&P 500 could jump 7%, Bank of America said in a note on Wednesday.
  • The inverted head and shoulders, a bullish continuation pattern, formed in the S&P 500 during the September selloff.
  • If the S&P 500 manages to decisively break above neckline resistance of 3,430, a measured move price target of 3,640 would be in play, according to the bank.
  • Visit Business Insider’s homepage for more stories.

The S&P 500 is set to surge 7% from Wednesday’s end of trading if the index can manage to decisively close above the 3,430 level.

Loading...

Load Error

That’s according to Bank of America, who observed in a note on Wednesday that an inverse head and shoulders pattern has formed in the index.

The inverse head and shoulders is considered a bullish continuation pattern in technical analysis and is a mirror image of the bearish head and shoulders pattern. 

The inverse pattern is made up of a series of three selloffs that typically occur during a period of market consolidation.

The pattern depicts an initial selloff, followed by a short-lived rally, followed by an even deeper selloff, followed by a short-lived rally, followed by one last selloff that finds a bottom near the same level of the first selloff.

The first and last selloffs represent the “left” and “right shoulder,” respectively, while the second (and deeper) selloff represents the “head” of the inverse head and shoulder pattern.

Read More: A $2.5 billion investment chief highlights the stock-market sectors poised to benefit the most if stimulus is passed after the election – and says Trump ending negotiations doesn’t threaten the economic recovery



histogram: An example of an inverse head and shoulders pattern formed in Roku in early 2019. FreeStockCharts.com


© FreeStockCharts.com
An example of an inverse head and shoulders pattern

Read the rest