Cosmos (ATOM) – Still able to upgrade the medium-term biasPosted on Wednesday, September 7 2022 at 9:14 pm GMT+0000
Cosmos (ATOM) could not find enough buyers to sustain the late August rebound beyond the middle-line of the regression channel pulled from June lows.
However, the latest setback could not yet inflict any damage to the medium-term positive structure, which is safeguarded by the rising exponential moving averages.
Moreover, the oscillators are suggesting that buyers are not ready yet to abandon the ship, despite the last retreat from around the August 24th high. The RSI has refused to drop below its equilibrium level and reversed upwards, while the momentum indicator keeps charging higher in the positive region.
If the bulls manage to decisively overstep the middle-line of the channel and the aforementioned August high of 13.45, they may then be encouraged to target the Fibonacci golden number of the 13.45 – 10.17 corrective wave at 15.48, located near the channel’s upper-line. By generating further traction at this point, they will accelerate the rally towards the 261.8% Fibonacci extension level at 18.76.
However, if the price drops below the 20- and 55-day exponential moving averages, it will immediately seek shelter around the latest bottom recorded on the 29th of August at 10.17. A decisive violation here will downgrade the medium-term outlook to bearish and trigger a steeper decline towards the 26th of July low at 8.59. Below that bar, the sell-off could proceed initially to the 13th of July bottom at 7.41.
To conclude, Cosmos is still sustaining a bullish bias in the medium-term window, and a sustainable move above the latest top of 13.45 will signal upcoming bullish advancements, while a downward break of 10.17 will confirm a new bearish era.