Compound (COMPUSD) Sets To Break Resistance As Price Leaves Demand Zone

COMPUSD Analysis: Sets To Break Resistance As Price Leaves Demand Zone

COMPUSD sets to break resistance as price leaves the demand zone. According to the Relative Strength Index (RSI), the market remains in a neutral state at the 50.0 level. COMPUSD is consolidating within a triangle pattern. The triangle consists of a diagonal resistance and a bullish order block at the $39.70 demand zone.

COMPUSD Significant Zones

Demand Zones: $39.70, $35.60

Supply Zones: $48.70, $63.80

 Throughout the last quarter of 2022, the market’s order flow was bearish. A rejection happened at the $63.80 supply zone. COMPUSD was distributed at the supply zone due to the bears’ interest in dominating the market. Following the distribution, a massive decline occurred. This led to the breaking of the $48.70 price level. The exuberant decline also led to the failure of the $39.70 demand zone after a long period of consolidation.

 As COMPUSD retraced upward from the $35.60 demand zone, a short-term high was created. The short-term high was created on November 15, 2022, at the $43.40 price level. At the $29.90 price level, a long-term low was created as the year ended on December 31. Following the creation of the low, prices experienced a massive expansion to the upside. The massive expansion led to the invalidation of the short-term high created at the $43.40 price level. The expansion concluded as the price formed the last three highs above the $48.70 price level.

 Market Expectation

 Following the reaction of price toward the four-hour Fair Value Gap (4H FVG), the market’s order flow has been bullish. COMPUSD is expected to resume the uptrend as it leaves the optimal trade entry above the demand zone.

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