NAVcoin Analysis – Head and Shoulders leaves no chance

NAVcoin is the second hero of the day. Situation here is much worse than this one seen on the Groestlcoin mentioned by us as the first instrument of the day. Currently, from the top, we are loosing almost 90% of the value. You have to admit that when an instrument goes down this much, you need to be cautious.

Technical situation here is very bearish. Over past few months, the price created a giant head and shoulders pattern (yellow rectangles). This is a bearish formation, which is promoting a further drop. The pattern ended with a breakout of the neckline (black), which in theory, is a legitimate trigger to open a short position. Along with the neckline, we also broke the horizontal support on the 0.83 USD (red). All factors here are unfortunately negative.

Sell signal is on, as long, as we stay below the combination of the red and black lines. Price coming back above, breaking those two and additionally climbing back above the green down trendline, will be a signal to buy. Sounds tempting but this scenario is currently less probable.