Tronix Price Analysis - May 16

Azeez Mustapha
  • The bears are enjoying a nice ride in the medium and short-term outlook of Tronix.
  • Intelligent selling at former demand areas turned into supply may be a considered a good strategy  

Tronix, TRXUSD, Cryptocompare chart

TRONIX Medium-term Trend: Bearish

Supply zones: $0.09000, $0.1000, $0.1100

Demand zones: $0.0500, $0.0400, $0.0300

Tronix's bearish trend is still valid in the medium-term. The bearish pennant formation of yesterday favoured the bears as predicted. The failure of the bulls to muscle up momentum for a breakout from the $0.07300 supply area resulted in the bears' strong comeback. The bears' momentum was strong and this resulted in breaking the $0.07000 and $0.06500 demand areas. The price was pushed below the three exponential moving averages crossover, after breaking the demand area at $0.07000, with a long bearish engulfing candle, as seen in the chart. The exponential moving averages are fanned apart, indicating strength in the context of the trend and, in this case, the downtrend. A rejection to the upward price move was seen at the moving averages and was well captured by the stochastic oscillator. The daily price opened bearish at $0.06678 below the three exponential moving averages crossover. This was lower than yesterday's open of $0.07070. These confirm more bearish pressure. As more bearish candles closed and formed below the crossover, the retest and possible break of the $0.06000 demand area is probable.

TRONIX Short-term Trend: Bearish

Tronix, TRXUSD, Cryptocompare chart

Tronix is bearish in the short-term. The bears finally overpowered the bulls as they take the market south of the range, down to the $0.06300 demand area. The downward trendline could not be broken by the bulls as their momentum fades away. The price is making lower highs and lower lows that are characteristics of a bearish market. The stochastic oscillator shows a strong downward momentum, hence more bears pressure to further continue the journey southward.

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