NEMs price is holding up strong while many others continue to decline. At a recent peak in the price, XEM
created a head and shoulders
pattern which sparked a reversal and a bearish
push until the EMA
(200) and around the 2/1 Gann fan
line. This push has now completed the head and shoulders
breakout and the price is ready to rise once again. The price has used the EMA
(200) on 5 occasions since July (including the current testing of this level), this brings me confidence when claiming that the price is expected to start its bullish
push once again to continue its long-term trend. This level is also backed and supported by the 78.6% fib retracement level and the fact that the RSI
was very recently oversold. There is currently no divergence but seeing as though the volume
is expected to become bullish
again when the RSI
increases, the price will increase accordingly. Due to the head and shoulders
patterns breakout completion, the neckline of this pattern becomes a strong resistance level
which is the basis for the first price target in the bullish
direction. The second is characterized by the top of the right shoulder and a level the head used as support when it was almost completed.
Important Resistance Levels: $1.29, 0.839
Important Support Levels: 0.357
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CONFLICTS OF INTEREST
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Senior Research Analyst