Cardano (ADA) has hit the support of pennant and formed bullish Butterfly for upto 55% bullish move

By moon333 | moon333 | 20 Dec 2019

The price action of Cardano / US Dollar is moving within a pennant since 18 Sep 2019 and sofar it has hit 4 times at the support of this pennant and two times at the resistance.

At this time I the priceline is hitting at the support and likely to have bounce from this support lets have a look on some basic indicators:

The Indicators and Oscillators:

The Stochastic is not oversold but very close to the oversold position and likely to give bull cross once it will give the bull cross then the bullish trend will be confirmed, Moving average convergence divergence (MACD) is also strong bearish but as we have already hit the support and the stochastic is also likely to give bull cross so the MACD will be turned weak bearish very soon and step by step it will be turned strong bullish like it was turned on 24th Oct 2019.

The price action is also hitting the lower bands of Bollinger bands which is also a good support for the price action but it would be more stronger support if the Bollinger bands would be sideways but at this time the movement of Bollinger bands is down so there is another possibility that the price action may move more little bit down sticking with lower bands until the RSI enters completely in oversold zone coz RSI also has little bit space to move more down upto 30 or more, at the time the RSI value is 33.88 which is close to the oversold point.

The Harmonic Move:

The most firm signals for me is the harmonic Move coz these harmonic move are predefined by the nature and formed by the supply and demands rules by humans and more than 90% they follow their predefined moves and trends.

Here at the support of this pennant the ADA has formed a bullish Butterfly and now the price action is moving in the potential reversal zone of this pattern.

After initial leg the A to B leg is retraced between 0.618 to 0.786 Fibonacci and B to C leg is retraced between 0.382 to 0.886 Fibonacci and finally the last C to D leg it retraced between 1.27 to 1.618 Fibonacci, so this potential reversal zone of butterfly pattern is another support for price action and most strongest bullish signal but however we should take care of out stop loss point which can be either the support of this pennant or the potential reversal zone of this bullish Butterfly pattern in case of a complete candle stick closes below these supports and we can set our sell targets either at the resistance of this pennant or 0.382 to 0.786 Fibonacci projection of tail to support of the pennant which is around at $0.0413 to $0.0506.