Compound (COMPUSD) Begins A Corrective Wave As Price Breaks The $35.70 Lows
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COMPUSD Analysis – Market Begins A Corrective Wave As Price Breaks The $35.70 Lows
COMPUSD begins a corrective wave as the price breaks the $35.70 low. The ongoing markdown began after the distribution phase finished eight weeks ago. On the daily chart, the market trend is bearish, as the bears control the market.
COMPUSD Significant Zones
Demand Zones: $35.70, $29.90
Supply Zones: $47.00, $63.80
The distribution phase that caused the ongoing markdown began its formation on January 15, 2023. This began after the breakout of the $47.00 resistance due to the rapid expansion of the price to the upside. COMPUSD was in an uptrend throughout January 2023. This was because of the buying pressure from the $29.90 support. As the year 2022 ended, the price hit the $29.90 support, after which the bulls invaded the market aggressively. Another reason for the conclusion of the uptrend was that the RSI (Relative Strength Index) has indicated that COMPUSD is already overbought.
The rapid expansion halted as the price began to range above the psychological level of $47.00. The $47.00 psychological level has proven to be significant, as price typically triggers reactions at this level. Following the breakout to the upside, a distribution phase commenced until a UTAD (Upthrust After Distribution) occurred. The ongoing downtrend is in a corrective phase as the fourth wave begins. The corrective wave is needed because COMPUSD is oversold according to the RSI (Relative Strength Index) indicator. The fourth wave is not expected to exceed 79.0% of the current trading range.
Market Expectation
A change of character has occurred on the four-hour chart as the price broke the equal highs to the upside. COMPUSD is expected to keep expanding upward until the premium zone is reached.
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