Possible Divergence for ETC
ETC has taken a slamming recently! My previous post was anticipating a possible bounce of the green trendline, which we never got. Therefore trades were not entered. Now we are bouncing off another crucial level of support shown as the red dotted line, which is all that stands in the way of a trend reversal for ETC.
The four hour time frame is showing bullish divergence on the RSI. If we can sustain this bounce and head back up to the trend line, then this would be positive signals that we have finished capitulating. If the red dotted support line can not hold us up, then we should expect more significant downside. Volume is still low but this is not necessarily important yet.
I would not be taking any positions at this time, and will keep updating.
The four hour time frame is showing bullish divergence on the RSI. If we can sustain this bounce and head back up to the trend line, then this would be positive signals that we have finished capitulating. If the red dotted support line can not hold us up, then we should expect more significant downside. Volume is still low but this is not necessarily important yet.
I would not be taking any positions at this time, and will keep updating.
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New Idea:
ETC is in limbo right now and can't decide what to do. We bounced from the red dotted support line but it was weak, and we seem to be retesting it again. This is problematic for me as these tend to be signals for more downside.
I've switched to hourly timeframes so that we can see what the Moving Averages are doing. As you can see, we have struggled to get above the 50 day MA during this capitulation. If we manage to get above this and start using it as support, I will become a little more positive.