ETH/EUR hanging man and shooting stars pull back rallies ETHEUR on intraday terms, forms shooting star patterns at 722.50, 709.50 and 708.23 levels, while hanging man patterns at 718.85 and 722.76 levels.
On the contrary, hammer patterns have occurred at 701 -702 levels.
Shooting stars and hanging man patterns are bearish in nature that are not analyzed in isolation, these are in sync with technical indicators.
The frequent occurrence of these bearish patterns occurred at peaks of rallies have hampered the previous bullish swings, while hammer attempts to counter these price dips (refer 2H chart).
However, the current price restrained below EMAs despite the prevailing rallies,
For now, more dips seem to be on cards upon bearish EMA and MACD crossovers and mounting bearish momentum signaled by leading oscillators.
Both RSI and stochastic curves have constantly been converging downwards that indicates strength and momentum in selling sentiments.
Whereas the same is not evident even though hammer propels rallies. Hence, the bullish signal is not convincing. On intraday terms, we see more imminent bearish signal than the bullish indication.
As a result, the trend on daily terms drifts in sideways and forms whipsaws on DMAs, both leading & lagging indicators indecisive.
One can think of shorting this pair on speculative grounds for targets upto 696 level with a strict stop loss of 711, while long-term investors need to wait for the better clarity.
