- Swipe price reveals bearish topping pattern on the intra-day chart.
- Intra-day Relative Strength Index (RSI) forecasts trouble.
- Swipe price history forces traders to be prepared for wide-ranging fluctuations.
Swipe price action in May has been counter-productive for a bullish outlook, as three failed attempts above the August 2020 high have forged a head-and-shoulders top pattern that projects a noteworthy decline in the coming days.
Swipe price fails to secure trader commitment
A head-and-shoulders top pattern is one of the highest-ranked formations in performance and success rate, but it is more complex, combining trend lines, support or resistance lines and rounding.
The pattern has three well-defined peaks, either sharp or rounded, with the second peak always higher than the other two, commonly referred to as the head. The first peak is the left shoulder, and the third peak is the right shoulder. Both the left and right shoulders are lower than the head, but they do not need to be the same height. In fact, a higher peak for the left shoulder has been found to add to the post-breakout performance for the topping pattern.
During May, Swipe price has formed a bearish head-and-shoulders top pattern with the shoulders being roughly equidistant from each other and symmetrical. The measured move target of the pattern is $3.50, or a decline of 22% from the current position of the neckline and a drop of 28% from the price at the time of writing.
In between the neckline and the target is the 50% retracement level of the rally since April 22 at $4.27 and then the 61.8% Fibonacci retracement at $3.89. Both should offer some support for Swipe price. A failure to hold the target at $3.50 increases the likelihood of at least a test of the 78.6% retracement at $3.35 and even the April 22 low at $2.67.
SXP/USD 4-hour chart
The higher probability outcome for Swipe price is a resolution of the pattern to the downside, but if SXP rallies above the right shoulder high at $5.30, the head-and-shoulders top pattern is voided, and speculators need to be ready for a test of the all-time high at $5.87.
An extended rebound will carry Swipe price to the 138.2% extension of the 2020 bear market at $6.89.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.