COMPOUND Ranges With Low Volatility
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Low Volatility Compound Falls Into Range
Compound experienced a surge in the market on the 19th of May. The market experienced very high volatility. The price plunged to $335.000 on the 23rd of May with a wick stretching beyond the zone. The market has since then failed to break the resistance zone at $466.500 after rallying from the support zone at $335.000. The recent resistance was formed on the 26th of May where the price experienced a sudden halt after three bullish candles on the daily chart.
Compound has traded within the range, bouncing on and off the lower and higher borders of the range. This is seen concurrently with low volumes in the market. The volume in the market has dropped continuously.
TheAverage True Range indicator has shown a decline pointing to low volatility in the market. The market is currently in a phase of consolidation.
COMPUSD Key Zones
Demand Zones: $172.500, $335.000, $681.000
Supply Zones: $466.500, $565.000, $884.900
Compound Market Anticipation
The moving average on the four-hour chart has crossed the candlesticks to the upper side to lead the price to the lower border of the range. This is seen with three consecutive bearish candles.
Compound has repeatedly bounced off the support level at $335.000 and the resistance level at $466.500.
The price currently is within the middle of the range with a bearish candle. Price would likely bounce on the support to seek for the higher border of the range at $466.500. The range might also be broken lower which might lead to a crash in the market seeking support at $172.500.
A surge in the market upwards could lead to a bullish run after a breakout of the range to reach $565.000.
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