Compound (COMPUSD) Is Set to Retrace, Remains Bullish

COMPUSD Analysis – Price Sets For Retracement As The Overall Trend Remains Bullish

COMPUSD sets for a retracement as the overall trend remains bullish. Following the reaction of price in the daily bullish order block, the market’s direction bias has been bullish. However, a retracement back to the discount is imminent as the MACD heads downward.

COMPUSD Significant Zones

Demand Zones: $47.40, $26.20

Supply Zones: $97.70, $174.90

Before the reaction of the price at the daily order block, the market was clearly in a downtrend. However, the momentum decreased after the swing high at the $70.60 price level was created. The massive crash occurred between April 2022 and June 2022. A quick bounce off the $26.20 demand zone led the market to the upside until the swing high was formed. Following the creation of the swing high at $70.60, COMPUSD lengthily declined, breaking the relatively equal lows (EQL), grabbing sell-side liquidity, and further sinking into the daily bullish order block.

While the market’s current trend remains bullish on the daily time frame chart, there appears to be some resistance above the current trading range, sufficient enough to completely change the market’s profile. However, the rally might continue until the 50% Fibonacci retracement level, provided the $97.70 supply zone doesn’t make a quick rebuff against the upward movement. The current trading range of COMPUSD is defined by the $70.60 and the $26.20 price levels. Price is currently heading into the discount zone to execute buy orders, which might eventually cause a massive rally beyond the $70.60 price level.

Market Expectation

COMPUSD is bearish on the four-hour chart, as confirmed by both the Failure Swing and the Market Structure Shift (MSS). The four-hour market structure might not align with the daily market structure until the four-hour bullish order block is reached.