Technical Analysis: Coins to watch for now

The market is bearish, and I am trying to find anything that follows any of the known chart patterns that can help us pick good trades. Whether you do it short-term or long-term, you want to find a bottom from which you are more likely to make a gain. Here are some charts that behave in accordance with some of the basics of technical analysis.

NEM/XEM

NEM is generally very choppy and it failed to excite the market participants with the recent conferences and website update. While the trend is overall sideways, it falls within the 5-0 harmonic pattern which means the next potential buy zone is in the 0.00005-0.000055 range. Don’t expect a big price rise until the Catapult release some time later this year, though.

Factom/FCT

Factom looks like it is halfway in its ABC correction upwards. I estimated the current C point some time ago, and that’s exactly where the price is at the moment. Wait for a breakout upwards at the level of 0.005BTC to buy. The sell target is 0.0077-0.008. Do I recommend to buy now? Generally, no, but it depends on your strategy. If you’re willing to risk a downward movement and wait longer (you should also be able to accumulate at the bottom to bring down your average, so plan for that as well), then now seems to be a decent risk-to-reward area to buy.

IOTA/IOT

IOTA has shown some strength breaking out of the previous downtrend, but it is not out of the woods yet. The volume is down as it seems to be consolidating at the current price. Watch out for the 0.000155BTC resistance line to be broken. Overall the chart pattern is bearish, but there is some indication of a positive movement in the near future on the MACD and Accumulation/Distribution indicators. The danger zone is the long term uptrend line between 0.00012 and 0.000125BTC. If it breaks though it on large volume, go short if you have a position, sit back and wait.

Other than these points of interest and patterns, I couldn’t find anything else on the markets of large coins. I am not expert by any means, so let me know if you see any mistakes or have other comments regarding the coins or the charts.

Check out my previous chart ideas on TradingView.