Compound Consolidates After Successful Breakout
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Price Analysis: Market Consolidates After Successful Breakout
Compound price is currently stuck between the resistance level of $60.90 and the support level of $50.70. The stagnancy seen on the daily chart appears to be an aftermath of the extremely volatile breakout of a symmetrical triangle in the market.
Compound Key Levels
Support Levels: $50.70, $38.90, $34.90
Resistance Levels: $60.90, $79.70, $97.50
Compound price fluctuated within the borders of a parallel channel from September till February. The parallel channel’s slope was gentle revealing the mild volatility sand strength of Bulls. The Volatility increased suddenly in the Market, causing a bullish breakout from the upward channel.
Exhaustion kicked in at the resistance level of $97.50. The Stochastic already signaled a bearish reversal as it was resting in the overbought zone at the test of the resistance level. A decline in the momentum was noticed with the formation of higher lows and lower highs leading to the formation of a symmetrical triangle. At the extreme and narrow point of the triangle, the price crashed aggressively to $50.70.
Market Expectation
The Stochastic Oscillator lurks in the middle of the range on the daily chart. This shows a stagnancy in the price. The Supertrend Oscillator still confirms the bearish stance with its red hue clouding the daily candles. Until a breakout, traders may still take advantage of the range on the lower timeframe trading from the borders to the middle of the range. Currently on the 4-hour chart, the Stochastic is overbought at the resistance border, hence the price is expected to sink back towards the middle of the range at $54.00.
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