Compound (COMPUSD) Explodes Upward Despite Hitting The Diagonal Resistance
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COMPUSD Analysis: Price Explodes Upward Despite Hitting The Diagonal Resistance
COMPUSD explodes upward despite hitting the diagonal resistance. The explosion to the upside was due to the conclusion of the bearish motive trend. The bulls stormed the market as the downtrend ended, thereby causing an aggressive upward surge across the diagonal resistance. Owing to the aggressive expansion, the market’s environment is likely to remain bullish for a long time.
COMPUSD Significant Zones
Demand Zones: $33.30, $23.20
Supply Zones: $47.00, $63.80
The bearish motive trend began after a distribution phase above the $47.00 resistance. The distribution phase came after the upward expansion from the discount zone at $33.30. The distribution phase was characterized by a consolidation that lasted for four weeks. On February 19, 2023, the price declined as the markdown began. This came following the UTAD (Upthrust After Distribution), which led to the creation of the six-month high at $63.80. COMPUSD crashed just as it consequently left the overbought region as per the RSI (Relative Strength Index) indicator. The decline marked the beginning of a downward trend.
From the swing high at $63.80, COMPUSD crashed downward to $35.60 before making the first upward correction. The third impulse swing was between the $48.70 price level and the $37.10 price level. At the $37.10 price level, COMPUSD made the second major correction to the upside before making the final impulse swing. At the $23.20 demand zone, the downtrend ended as the price also bounced off the diagonal support. Owing to the overwhelming buying pressure, the diagonal resistance failed to cause a price rejection to the downside. COMPUSD flipped bullish as the market’s environment became bullish after the explosion.
Market Expectation
On the four-hour chart, COMPUSD is completely under the control of the bulls. This was a result of the breakout from the triangle pattern on June 21, 2023. The market is expected to remain in an upward trend until resistance at $63.80 is hit.
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