Cryptocurrency
by Seth Parker on June 29, 2018

Loom Analysis – Broken down trendline but…

Friday, for us, starts with the Loom. It is the first analysis today and the first analysis overall for this crypto. Loom is relatively a new coin on the market but already the market cap is significant and what is more, the price is already respecting the price action principles. Unfortunately for the new hodlers, the perspectives are not bright.

Loom is in the deep downtrend since the 4th of May. The price was going down nicely, using the black down trendline as a resistance. In the meantime, the price created three technical patterns (pennant -red, flag – blue and another pennant – green). All of those formations finished with the breakout of its lower lines, which only confirmed the sell signal.

Loom Chart

On the 24th of June, the price broke down trendline but in my opinion, that breakout is not significant and should not trigger us a buy signal.

Why I am not convinced?

According to the technical analysis, if trend suppose to be reversed, we should see much stronger upswing. After the breakout, the price entered a very flat sideways trend, which shows us that there is no demand here. The buy signal is not here and the price should continue to go down.

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.

More content by Seth Parker

Comments (0 comment(s))