STILL bullish on KNCUSD but the bottom trend line needs to hold
Updated
The bullish case:
1. Market structure: the inverse head and shoulders along with the ascending triangle pattern is still holding. But the price action is currently near the bottom trend line so I would keep a close eye out on it.
2. Volume: seller volume has decreased and is most apparent on the 4 and 6HR timeframe, This could be the signal for a trend reversal as sell pressure becomes weaker if seller volume does not start trending up again with lower price action.
3. RSI: there is currently bullish divergence on the 6HR timeframe. It can also occur soon at the the 1 and 4HR timeframe if the price goes down to about 1.59 USD.
The bearish case:
1. The price action breaks the lower trend line and the next level of real support will be 1.50 and then 1.40, which is where the 12HR 200 moving average is currently sitting.
1. Market structure: the inverse head and shoulders along with the ascending triangle pattern is still holding. But the price action is currently near the bottom trend line so I would keep a close eye out on it.
2. Volume: seller volume has decreased and is most apparent on the 4 and 6HR timeframe, This could be the signal for a trend reversal as sell pressure becomes weaker if seller volume does not start trending up again with lower price action.
3. RSI: there is currently bullish divergence on the 6HR timeframe. It can also occur soon at the the 1 and 4HR timeframe if the price goes down to about 1.59 USD.
The bearish case:
1. The price action breaks the lower trend line and the next level of real support will be 1.50 and then 1.40, which is where the 12HR 200 moving average is currently sitting.
Note
*These are purely my speculations and are not financial advice.
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