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by Seth Parker on May 4th, 2018

GoldCoin Analysis – Head and Shoulders Formation to the rescue

The second cryptocurrency for the day is the GoldCoin. The name is catchy but this altcoin is not very popular. Situation on the chart is very similar to this one seen all over the place on the crypto market. What we have here is a huge rise at the end of last year/beginning of this year and then a huge reversal. On the GLD we went from almost 0.6USD to slightly above 0.05 USD.

Gold Coin

Currently we do see some chances for a bigger bullish reversal. Our positive view is supported mostly by the fact that the price draw a huge inverse head and shoulders pattern (yellow rectangles). The formation is already active as the neckline was already broken (blue line), so in theory, the buy signal is on. Actually it was triggered yesterday and today, we are testing the neckline as a closest support. The positive test of the blue line will be a confirmation of the positive sentiment on this instrument.

The next support is on the 0.159 USD. In my opinion, as long as we stay above the green line, the sentiment is positive and one can think about buying.

By Seth Parker

Seth is a professional trader with over 10 years of experience. He specializes in the technical analysis. His main focus is on the pure Price Action. In his trading, Seth used the trends, supports and resistances and technical formations. Always, the most important thing in his strategy is the money management. Seth reached a proficiency in trading and for the past three years is doing that for a living enjoying the sun and lovely beaches of the Spanish coast.

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