The Archbishop Don Juan Magic TRON!!! (TRX/BTC) >=D

Hi friends! Welcome to this update analysis on TRON! Looking at the four hour chart, we can see that the failures at the 50 EMA (in orange,) have continued as anticipated. If you recall from two TRX/BTC posts ago, I said "If you'll notice, there is actually a pattern of fails and holds. We can see that each time the first "Fail" or "Hold" is posted, at least two more tests follow. If this pattern is to repeat itself, we can assume that TRX/BTC may test the bottom of the 50 EMA, a few more times, in the near future. We have one fail posted right now, so perhaps a few more tests occur, before we get a break to the upside, or a break to the downside." We can see that there have been numerous fails since then, as TRX/BTC is squeezed and compressed between the 50 EMA and the 200 EMA (in purple.) Looking at the MACD, we can see that it has stagnated with price, as the momentum indicator drifts sideways below the zero line. Ultimately, I think TRX/BTC will continue to trade sideways, until it hits the top of the downtrend channel. When that occurs, it will likely be forced to move in one direction or another. I would like to warn you, that when price action coils up like this, it can produce an explosive move. Think of it as a spring that is coiling tighter and tighter. The direction that it breaks, however, is yet to be determined. Currently, we can see that TRX/BTC has actually slipped slightly below the 78.6% retrace, as it moves between the 50 and 200 EMAs. Given the fact that we are in a downtrend channel, in a bear market, failing to get above the 50 EMA, and closing in on overhead resistance (top of the channel,) the most probable direction is to the downside. That's not to say that a breakout above the downtrend channel isn't possible — it's just not the most likely outcome.

This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!

***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***

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-JD-