Hi friends hope you are well and welcome to new update on Theta coin. Last month I posted ideas on Theta and Thetafule . The Tfuel idea has been executed successfully and on the other side, the Theta has completed the final leg of pattern and moving towards the sell zone. If you have missed my previous post then here is the link:
@moon333/get-ready-for-another-upto-365-rally-by-theta-and-theta-fuel-tfuel
In today's article we will do analysis on Theta with US Dollar pair.
Price action is breaking out the resistance of channel:
On daily chart after the powerful bullish divergence price action was retraced and started a correction rally. During this correction rally the priceline also started the formation of a down channel. At this time after hitting at the support of this channel on 27th of June the protection is again reached at the resistance and likely to breakout the resistance of the channel.
The EMAs:
After the correction rally. On 9th of June the priceline of Theta coin also broke down the exponential moving averages with the time period of 10 and 21. Once the candlesticks will be completely closed above these exponential moving averages then these EMAs will become a very strong support for the priceline.
The SMAs:
Now I would like to show you the simple moving averages with the time period of 25 50 100 and 200 on the daily chart. The price action broke down the 50 and 25 simple moving averages. At this time the priceline of Theta coin broke out the 25 SMA again and moving upwards to break out the 50 simple moving average as well. We can also expect a complete open alligator mouth formation by the simple moving averages same as like it was formed in May 2020. When we had the 25 simple moving average above all then 50 then 100 and 200 simple moving average was below are all the moving averages and the price action turned very strong bullish.
Ichimoku cloud on long term chart still strong bullish:
now if switch to the weekly long term chart then it can be easily observed that the Ichimoku cloud is still bullish. And the conversion line is still above the baseline and during the recent correction rally the lagging span was moving down but now it can be clearly seen that it is moved up. And finally, we have a bullish candlestick appeared on this long-term chart. Therefore we can expect a sequence of bullish candlesticks and a bullish move that can lead the price action to the sell zone of the pattern that I posted it in my previous article
Conclusion:
After the powerful bullish divergence in the month of May 2020 when the price action was moving down. Most of the people were thinking that it is crashing but in fact that was the retracement rally. Therefore we can expect that the price action will be moved up from here.