Compound (COMP) – Perusing the upper line of the regression channel

Compound (COMP) – Perusing the upper line of the regression channel

Compound (COMP) has been perusing the upper line of the regression channel pulled from the November peak and charted a new lower low on Tuesday stretching its four-month bearish trajectory.

The Bollinger bands squeeze over the past couple of weeks foreshadows a significant change in volatility ahead, and the momentum indicators are sponsoring extra losses. The MACD has crawled underneath its trigger line while hovering in the bearish territory, and the KST just crossed beneath its signal line below zero, both painting a dismal picture.

So, if the bears snap the lower-Bollinger band currently seen at 106.65, they will send the price towards the November 2020 low at 80.80. Breaching this hurdle too, they will next challenge the middle line of the regression channel before eying the all-time low at 62.00 posted two years ago.

On the upside, the bulls could get congested once again around the upper line of the regression channel. Any step higher, and beyond the mid-Bollinger band currently at 129.40 may immediately pause around the last week’s highs of 138.10. Next, the price will likely climb towards the 152.15 ceiling, which encompasses the upper-Bollinger band and the February 8^th top, where any violation will bring the January 10^th inside swing low at 175.40 next into view.

In brief, Compound repowered the negative bearing inside the regression channel, and a break below 106.65 will activate new selling orders.