Cosmos (ATOM) – Facing an improving bias in the short-term picturePosted on Monday, July 4 2022 at 9:19 pm GMT+0000
Cosmos (ATOM) started the new week on the front foot, having stepped on the 20-period exponential moving average to stretch the recent positive thrust that unfolded a few sessions ago. Moreover, buyers are pushing for a decisive move above the recent high of 8.74, to claim full control of the reins.
Technically, the rising exponential moving averages are endorsing an extension of the current price rally, while the short-term oscillators are suggesting that the positive impetus keeps growing. The MACD is edging higher above its signal line in the bullish region and the ROC is surging above its equilibrium level.
The buyers are currently confronting the 26th of June high at 8.74. By successfully overrunning this ceiling they will confidently march towards the 161.8% Fibonacci extension level at 9.89. Next, they will aim for the 261.8% Fibonacci extension at 11.74.
Alternatively, if breaching the aforementioned resistance barricade proves to be a difficult task for buyers to accomplish, the price will drop back towards the 20 and 55-period exponential moving averages, which will act as an initial safety net, deterring any moves towards the previous low at 6.89. In the case the latter fails to hold, the descent will deepen towards the 5.55 low recorded on the 18th of June.
In brief, Cosmos is facing an improving bias in the short-term picture, with the bulls aiming for a decisive move above 8.74 to stage another extension higher. Only a drop in price below the moving average could raise concerns about re-emerging bearish forces.