Compound (COMP) – Sellers applying intensive pressures to further deteriorate the medium-term outlook
Posted on Monday, December 19 2022 at 9:07 pm GMT+0000After almost a month of quiet price action, Compound (COMP) sellers applied intensive pressures last Friday and pressed the price towards the November 9th bottom of 32.43, while aiming to underpin the medium-term bearish structure.
The falling 20- and 50-day exponential moving averages are promoting the continuation of the two-month-old bearish pattern, and the oscillators are conveying that the negative impetus is strengthening. The ROC is plunging in the bearish waters and the MACD just crossed beneath its signal line.
Sellers are now confronting the 32.43 support hurdle, and if they manage to dive the price clearly below it, they will instantly target the 161.8% Fibonacci extension level of the recent up-leg at 25.64, located just beneath the summer bottom printed on June 18th. Should this key base fail to keep growing negative forces at bay, the coin could then plunge toward the 261.8% Fibonacci level at 14.65.
Alternatively, in the wake of any sudden improvement in market sentiment, the buyers will initially challenge the 20-day exponential moving average at 37.21. A step beyond that will shift attention to the 50-day exponential moving average at 41.02 ahead of the tough resistance of 43.42, where the August 29th bottom and the November 15th peak overlap. Any strong violation at this point will upgrade the medium-term outlook and open the doors towards the October 27th high of 54.53.
Summarizing, Compound is maintaining a sturdy bearish bearing below the exponential moving averages, and a breach below 32.43 will boost the negative tendencies.