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XEMBTC has limited bearish potential:bullish bias

Price action in XEMBTC (NEM) from the May 22, 2017 high of ~0.00013911 down to a low of ~ 0.00001128 (on Dec. 8, 2017) is corrective i.e. a 3 wave move in this case that I have labelled as an A-B-C Elliott wave structure. This implies either at least another 3 wave move back up or the resumption of a bullish impulsive wave.

Price swing upwards from the Dec. 8, 2017 low up to a high of ~0.00010264 on Jan. 4 2018 was rather another correction (3 wave move), and not impulse move. The current price swing downwards from the Jan. 4 2018 high is either wave (C) or wave B. Either scenario implies the resumption of at least another 3 wave move back upwards or impulsive move. Since both scenarios point upwards (bullish), XEMBTC should be considered for a long position (bullish).


Support 1 (between 0.00003263 and 0.00002451) is a likely target for the current downswing in price and if price breaks through Support 1, Support2 (between 0.00001244 and 0.00000235) would likely offer a floor for XEMBTC.

Assuming a scenario where price continues to sell off and reaches Support 1, buying a break out  after consolidation at Support 1 (e.g. at ~0.00003271 and placing the stop loss below Support 1 e.g. 0.00002447 would give a risk = 0.00003271- 0.00002447 = 0.00000824

Reward = 0.00006858 (Bottom range of Target 1) – 0.00003271 = 0.00003587

Risk/Reward ratio = 0.00003587/0.00000824 = ~4.4:1. Use of a break out above Support 1 as explained above for example and using the bottom range of target area 2 to take profit will give a risk/reward of ~7.3:1 .

Use of the bottom range of target 3 to take profit gives a risk/reward ratio of ~10.4:1

Range for Target 1: 0.00006858 and 0.00007573

Range for Target 2: 0.00009321 and 0.00010503

Range for Target 3: 0.00011808 and 0.00013852

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