Compound Seeks Support Once Again After Failing to Break Out
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Compound has failed once more to break out of the resistance zone at $454.00. The market has been trapped between the support zone at $327.00, and the resistance zone at $454.00. The market experienced a breakout of the support level at $707 on the 16th of May 2021. A retest was seen below the key level after which the price plunged. Price dropped into the range on the 22nd of May, 2021.
The struggle between the bulls and the bears has resulted in a breakout failure at $454.00.
COMP/USD Key Zones
Resistance Zones: $454.00 $886.00
Support Zones: $327.00 $707.00
What to Expect From Compound
The market has dropped the second time into the lower Bollinger band. The band is acting as a support for price in alignment with the support zone.
The price is currently laying around the support zone at $327.00
On the daily chart, the Stochastic oscillator is currently in the oversold region signaling the exhaustion of sellers in the market. This presents an opportunity for buying. This also correlates with the indicator on the four-hour chart time frame.
The MACD (Moving Average Convergence Divergence) lines are below the zero mark. The lines have crossed in preparation for a rally in the market. The histogram sell bars are fading gradually and reducing in size towards the upside.
The indicators present a buy signal and the current level of the market creates a perfect entry opportunity for a buy in the market.
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