- NEM is bullish in the short-term with a strong upside move currently underway
- The four-hour time frame shows a bullish inverted head and shoulders pattern
- The medium-term time outlook remains bearish, although bullish momentum is building on the daily time frame
XEM / USD Short-term price analysis
In the short-term, NEM is bullish with the four-hour time frame showing that a strong technical breakout is underway.
Price has broken above the neckline of a bullish inverted head and shoulders pattern, with technical indicators on the four-hour time frame also turning bullish.
Overall, NEM has staged a strong recovery after coming under heavy selling pressure at the beginning of February. Traders should watch this pair as a major price floor may have been formed.
XEM / USD H4 Chart (Source: TradingView)
Pattern Watch
Traders should watch for a further advance in the XEM / USD pair towards the January 30th trading high as it has the potential to create a much larger inverted head and shoulders pattern.
MACD Indicator
The MACD indicator on the four-hour time frame has turned strongly bullish.
Relative Strength Index
The RSI indicator has moved into overbought territory and is showing signs of possible upside exhaustion.
XEM / USD Medium-term price analysis
NEM remains bearish in the medium-term, with the daily time frame chart showing price recovering back inside a descending price channel.
Traders should note that sellers failed to hold price outside of the price channel and we may well see a recovery in the XEM / USD pair towards the upper end of the price channel.
Traders should be cautious on this pair due to the protracted down trend it finds itself in, and also a large head and shoulders pattern remains valid across the daily, weekly and monthly timeframes.
XEM / USD Daily Chart (Source: TradingView)
Pattern Watch
Aside from the descending price channel, a bullish inverted head and shoulders pattern is visible on the daily time frame.
MACD + RSI Indicators
The MACD indicator is bullish on the daily time frame and shows scope for further upside, while the RSI indicator is generating a strong price buy signal.
Conclusion
NEM is likely to continue to grind higher in the short-term due to the recent breakout and bullish signals coming from indicators on both the four-hour and daily time frames.
The overall medium-term bearish outlook is likely to remain in place until we see a strong breakout from the descending price channel on the daily time frame.
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NEM
(XEM) - Price
$0.042 - Market Cap
$374,131,267.89
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