Hey guys and gals hope you are fine and welcome to the new update on Theta coin. In my previous article I shared that Theta in the US dollar market and in the Bitcoin market as well forming different harmonic patterns. Finally the priceline has completed the final leg of these patterns and at this time the price line is gearing up and moving above the potential reversal zones. Below were the articles:
Theta with US Dollar pair:
Theta with Bitcoin pair:
Breakout the channel and re-testing the support:
Now if we take a look at the daily chart the priceline was moving in a down channel and has broken out the resistance of the channel. At the moment the priceline is re-testing the previous resistance of the channel as support.
If we see the exponential moving averages with the time period of 10 and 21 then on 11th June the EMA 10 crossed down the EMA 21. Since then both moving averages are not able to form the bull cross and finally, on 9th July we have received a bull cross between these EMAs again.
The simple moving averages:
Now if we watch the simple moving averages with the time period of 25 50 100 and 200 on the daily chart then the price action crossed down the 25 and 50 simple moving averages. At this time the priceline of Theta dcrossed up the 25 simple moving average again and likely to be rejected by 50 SMA. Now it has good support of 25 SMA and in case of breaking down the 25 simple moving average, the price action can move down to the 100 and then the 200 simple moving averages.
Ichimoku on long term 1st time turned bulish:
Now I would like to draw your attention towards a very strong signal that ichimoku cloud has given on the weekly chart. The cloud has turned bullish and we have also received a bull cross between the conversion line and the baseline as well. This bull cross has formed above the priceline of Theta therefore it is not as that much powerful bullish signal as it would be appeared just below the candlesticks. The lagging span has also crossed up the candlesticks and at this time after some downward move it is moving up again.
In the short and mid-term the price action has broken out the resistance of the channel. Therefore it is a very powerful buying signal. However, the further upward move depends on the successful re-testing of resistance of the channel as support. And on the long term after a long period of time for the first time, the Ichimoku cloud is turned bullish. Therefore we can expect that this bullish rally will be continued for the long term.
Note: This idea is education purpose only and not intended to be investment advice, please seek a duly licensed professional and do you own research before any investment.