Cosmos (ATOM) – Attempting to stretch the recent headways beyond a remarkable resistance zonePosted on Monday, July 18 2022 at 9:19 pm GMT+0000
Cosmos (ATOM) formed a significant foothold around the 20- and 40-period exponential moving averages and the lower line of the regression channel and thrusted beyond the previous intraday top, underpinning the last ascent unfolded from the 7.41 bottom.
Technically, there is scope for additional improvement in the short run given the positive charge exhibited by the 20 and 40-period exponential moving averages and the positive alignment between the +DI and -DI of the ADX indicator with the indicator itself shooting beyond 20. Additionally, the TSI is hovering above its signal line in the positive territory.
However, the price is testing an already proven strong resistance that may place the buying appetite under threat, the 8th of July high at 9.75. Directly above that, the channel middle line might act as another restrictive line. By overstepping these hurdles, buyers will initially pursue the return line of the channel around 11,30.
Alternatively, if positive forces start to fade, initial support may develop in the vicinity of the channel’s lower-line and the 16th of July low, fortified by the 40-period exponential moving average around 8.95-8.80. Below this key barricade, the spotlight will turn towards the 5th of July inside swing low at 8.37. Piercing below this level, the price may then plunge towards the July 13th low at 7.41.
In brief, Cosmo’s recent headways inside the short-term channel reached a familiar resistance zone, preserving some caution. However, a strong jump over 9.75 will boost buying interest.