Smooth Love Potion (SLP) formed a bullish pattern within the horizontal support area. Results are likely to bounce back.
Since reaching a high of $0.04 on February 10, the SLP has been falling. After falling and rebounding, the price made a lower high on April 4 (red icon) and continued to fall. This led to the April 18 low of $0.0153.
The price has been rising after rallying towards the horizontal support area at $0.0165.
This formed a double bottom relative to the March 14 price, which is considered a bullish reversal pattern.
However, the pattern has yet to be confirmed due to the lack of a clear rally.
double bottom pattern
A closer look at the SLP readings from the daily time frame does not reveal a clear direction of the trend. While the RSI has produced a slight hidden bullish divergence, a sign of a continuation of the bullish trend, the rest of the readings are neutral.
The RSI is very close to the 50 line and the MACD is close to 0. Both are considered neutral readings, failing to support a hidden bullish divergence.
However, the six-hour chart is more bullish. It is showing a clear bullish divergence in the RSI and MACD (green line). Furthermore, both indicators are moving upwards. These readings support the possibility of a rebound.
If the SLP does rebound, the first level of resistance will be at $0.022. This is both the 0.5 Fib Retracement resistance and the horizontal resistance area.
SLP wavenumber analysis
According to technical analyst @cvotrades, the price is completing an ABC correction structure towards $0.011.
The move since February 10 does look like a full ABC structure (red) with waves A:C at a ratio of 1:0.618. This is the second most common ratio in this type of structure.
If accurate, this would mean that the SLP will now begin a significant upward movement, continuing the growth that occurred in early February (highlighted).
If so, SLP could move all the way up to $0.045. The target is found by using parallel channels to the February high and low, respectively.
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