Weekly Performance Review of Equity Markets vs. Cryptocurrency Markets: Feb. 26 – March 2

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Global Equity Markets: Upcoming News are revealed

Even though an interaction changes from time to time, they can sometimes be observed as a class to see which might be leading or lagging. This parallel performance can provide a sign of what might be coming next for particular markets or at least aims to signs to watch for. In cases of high comparison disappear, as we’ve seen recently, the symptoms can be especially insightful.

 

In recent times, each of the equity markets followed high record price or trend highs, fell sharply together, and then reorganize accurately together. Investors may be thinking what comes next? Is the volatility over or will we see more sharp moves in the near-term?

 

 

Europe might be aiming the way as last week the continuation of the bear trends in both the U.K. FTSE 100 Index, with a drop of 174.50 or 2.41% to close at 7,069.90, while the German DAX Index was the worst performer, which fell 570.10 or 4.57% to close at 11,913.70. Even though the performance is not what is most affecting, it is instead what is indicated by a review of the price charts.

 

As per the last week, every market had slid down below the recent swing lows from four weeks ago and had shut down below those lows on a weekly basis. This price style was cause to happen bearish trend continuation signals. It not only indicates the points to further downside for those indices, but also the bearish investor sentiment represented might spread to other markets. Markets in Japan and China look particularly defenseless.

 

Nikkei 225 Index Crack down hard!!

Three weeks ago, following the 20,940.15 low hit, support of the long-term uptrend line, the Nikkei 225 went high by 7.4% as of the last week’s 22,502.05 high, which is 50% repeat of the downtrend. Nevertheless, resistance was quickly being seen, and the more efficient downside force again kicked in, driving the index down 711.14 or 3.25% to end at 21,181.64.

 

The decline of the top included two right-sized gaps, reflecting the conviction of sellers, and the week ended at a 20-week closing low, a bearish sign.

A downslide below last week’s low of 21,088.96 is short-term bearish, but a drop below and consecutively, had close below the recent low swing is needed to trigger a continuation of the developing bearish trend. The Nikkei heads towards 20,318 if a bear trend continuation is triggered.

 

 

Shanghai Composite: Crashes while moving up..Channel remains undamaged

Shanghai Composite’s technical condition is the worst of the main equity indices as it broke down from a long-term ascending trend channel during the recent sell-off. Followed by the 14.6% drop off the 3,587.03 peak this January, the index found support at 3,062.74. It afterword rallied 8.9% as of last week’s 3,335.99 high. That high also completed a 50% repetition of the decline.

 

However, looking at the developing pattern, we can see a bearish breakdown of a climbing trend channel followed by a retracement back to an opposition zone around the bottom of the chain. This is a simple price behavior for a bearish trend; progress support pursues by a retracement back to that price zone to test it as resistance. A drop below last week’s low of 3,228.59 points to further downside

 

 

Cryptocurrencies: Looking for comparative  strength

As mentioned in last week about the significant cryptocurrencies that have been strengthening or combining over the past several weeks in a relatively interactive fashion. A crucial advance or decline for one or a few may point the way for the group, and therefore we will be watching closely for signs of relative strength and weakness. Not only we can see relative strength in performance numbers but also within the evolution of an upward tendency. Now and then, this can be a more accurate indicator for what might be coming next, after all, the trend tends to continue for some period and as it progresses multiple bullish signals provide an opportunity to join in the advance.

 

 

Last week, six from eight currencies followed were positive with only two negatives, but it was less than 5%. This was a betterment over the previous week when they all were down for the week.

Nowadays, Monero is the leading the way on a technical basis, and last week even in performance wise with a $64.57 or 23.2% advance to end at $342.80. In the technical term, Monero is followed by Bitcoin, which was up 8.5% last week to close at $11,029.99. There will be more about Monero in the discussion below.

 

Bitcoin is now making an effort to break out to a new trend high. If it takes place, there will be an original bullish signal for the crypto. A move above mentioned swing high of 11,780 messages an addition of the uptrend that has followed the pierces low bottom of 5,920.72 reached a month ago. Last week Bitcoin was up $863.9 or 8.5% to close at 11,029.99.

 

The second best performance last week, was IOTA. It was up by 0.21 or 12.1% to end at $1.92. It has been fighting to continue higher following the peak of $2.21 hit three weeks ago and the consecutive pullback. From the past five days or so, it has been pushing up against the resistance zone around its long-term downtrend line. A breakout above the six-day high of 2.09 will signal a move above the line and be an early bullish signal that will require further confirmation as price progresses higher if it is to do so.

Monero: Leading the crypto region at the higher note

 

Located on the price chart and the advancement of the uptrend, Monero is leading the crypto sector higher. Following the $150.00 bottom reached four weeks ago the XMR/USD pair has rallied as much as $223.82 or 149.2% as of Saturday’s $373.82 high. Unconcerned of the rally, the bottom looks solid as it matched prior resistance (now support) from the Oct.-Sept. 2017 peak and the 78.6% Fibonacci retracement zone.

 

 

A bullish trend continuation sign was given late last week as the cryptocurrency emerges above the prior swing high of $330.00. That breakout shows strength in the second leg of the uptrend coming off the recent bottom. So far, out of the eight cryptos discussed, Monero is the first to take out the first swing high that occurred since the roots from a month ago. It is now in the right place to at least complete a measured move or ABCD pattern around $437.49, if not continue further. When combined with the $449.18 swing high opposition zone from January a target zone from around $437.49 to $449.18 is generated.

Dash: Maybe closing to moving again

Dash was down $26.32 or 4.2% last week to end at $604.28; it is the second weakest performer of the eight cryptos followed for this segment. Year-to-date the DASH/USD pair has fallen 40.1% from its $1,625 record high reached in December. Following to high the price dropped to support around earlier resistance, swing top, from last August, as it hit a low of $376.05. From there it raises as much as 99.3% as of the $749.41 peak ran three weeks ago.

In last ten days or so Dash has been combining within an almost narrow range with a low (support) of $570.68 and a high (resistance) of $652. This range is on a support of the long-term uptrend line. As a result, the consolidation pattern has potentially great meaning than it might otherwise since the rising edge represents the long-term uptrend.

 

 

A flow can be expected to move until proven otherwise. Consequently, a decisive breakout above $652 is not only a breakout of a short-term consolidation range but it also indicates a successful attempt of support of the trend line and should point to additional long-term bullish continuation signals. Fibonacci retracement levels of the downtrend are added on the enclosed chart and can be looked at as potential near-term targets.

The downside appears to be a break below $570.68 is bearish and symbolize the second time in a month that the uptrend line would have been ruin.

Nishanth Shetty

Nishanth Shetty is a technical writer, author and a crypto-advisor working at Cryptofame. Based in the city of dreams, Mumbai, on the west coast of India. He holds a bachelors degrees from Mangalore University. Nishanth has a myriad experience of technical writings for tech brands. His interests include technology, travel, and food.