On Nov. 18, Hello Pal International, Inc (OTC:HLLPF) announced it had purchased 130 additional Antminer L7 mining rigs for the mining of Litecoin (CRYPTO: LTC) and Dogecoin (CRYPTO: DOGE).
When the machines are delivered in December, the Vancouver-based company will boast a total of 400 L7s mining rigs.
Hello Pal is a social media app that focuses on social interaction, language learning and travel where users can communicate in real time with other users from all over the world by chat or livestream video and by interacting with pictures users are able to upload to the app.
The platform also includes a cryptocurrency wallet and, in the future, is set to offer a crypto mining service where users can own or part-own their own specific miner, housed by Hello Pal, to begin mining Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), Litecoin and Dogecoin.
Since Nov. 16, when Hello Pal reached a high of 70 cents, the stock has fallen 25% in sympathy with a slump in the general cryptocurrency markets. On Wednesday, Hello Pal was printing a reversal signal that the bottom may be in.
See Also: What’s Going On With Dogecoin Today And Is A Price-Trend Reversal In Store?
The Hello Pal Chart: Since Nov. 16, Hello Pal has been trading in a confirmed downtrend, with the most recent lower high printed on Monday at the 67-cent level and the most recent lower low formed on Wednesday at 55 cents. If the downtrend continues, traders can expect another consecutive lower high to be printed over the coming days.
On Wednesday, Hello Pal was working to print a long-legged doji candlestick pattern, which indicates a reversal to the upside is likely in the cards, although higher prices will be needed on Friday for confirmation. Traders will then want to watch for whether the doji is just an indication of a bounce into a lower high or if a trend change to the upside is in the works.
Average daily volume has been decreasing since Monday, which also indicates a possible impending bounce or trend change because the stock is running out of sellers. By Wednesday midafternoon, only about 207,395 shares had exchanged hands compared to the 10-day average of 722,570 shares.
Hello Pal is trading above the 21-day exponential moving average (EMA) but below the eight-day EMA, with the eight-day EMA trending above the 21-day, which indicates indecision. The stock is trading above the 50-day simple moving average, which indicates longer-term sentiment is bullish.
- Bulls want to see big bullish volume come in and push Hello Pal up above the eight-day EMA, which would avoid the eight-day cross below the 21-day. There is resistance above at 62 cents and the 70-cent level.
- Bears want to see big bearish volume come in and drop Hello Pal down below Wednesday’s low-of-day, which would confirm the downtrend is still intact. There is support below at the 54-cent level and at 47 cents.
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