Technical Analytic for #ICN #Iconomi (04/09) - Back to workBack to work from vacation, here's my first signal :)
#ICN (ICN/BTC)
Buy : Under 7000
Flash Sell : 7050-7100-7150-7200
Short Sell : 7300-7400-7500-7600
Long Sell : 8000-8500-9000-9500
Stop : 6700
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Iconomy
Iconomy VS Bitcoin Descending ChannelSince the end of April, Iconomy has been consistently losing to Bitcoin. Price went down from 18k to 5.5k satoshi in just three months, with a drop of nearly 70%. On the 31st of July, ICN/BTC has formed the low at 5.5k level where it rejected the lower trendline of the descending channel.
The trend is still heavily bearish, but based on the past price action, a correctional wave up might continue. However, the probability of yet another move lower remains very high, and ICN cold test the 5k or even 4k psychological support levels before having a strong corretion upwards.
It is important to watch these psychological support levels for the potential buying opportunity if the support is rejected. In this case price might go up to the 11k satoshis area, where previous strong resistance has been established.
Break and close above 11.3k satoshis could be the confirmation of the stronger wave up and even result in a medium term uptrend.
Iconomy Buy Trade SetupIconomy currently stuck between the support and resistance levels. the support is at 78.6% Fibonacci retracement level, that is $0.87. The resistance is being the point of breakout of the descending channel, that is $1 psychological price.
In order for ICN/USD to start moving higher, a close above $1 is required. When/if that occurs, price should continue going up reaching on of the resistance levels. The fist resistance is at $1.3, that is 50% Fibs. Second resistance is at 23.6% Fibs applied through the all time high, that is $1.75. And final, key resistance, that could be considered as an upside target is located at $2.4 area, and confirmed by two Fibonacci retracement levels.
Price might continue to consolidate between $1 and $0.87 for a little while, but if it breaks and closes below the $0.84, the downtrend could start dominating sending ICN down to the $0.64 support area.
