COMP Technical Analysis: Surging Buying Activity Fuels Breakout Rally
Table of contents
Key Technical Points:
Past Performance of COMP
As mentioned in our previous analysis, the breakout rally in COMP prices sustained above the broken trendline and the selling pressure near the $55 resistance level results in a retracement to retest the trendline. However, the post-retest reversal results in a price jump of 15% over the last three days and prepares to surpass the overhead resistance at $55.
Source - Tradingview
COMP Technical Analysis
The COMP price action shows a morning Star pattern fueling the post-retest reversal, leading to a V-shape pattern with a neckline at $55. Hence if the daily prices close above the $55 resistance, traders can expect a bull run to the $75 mark.
The MACD indicator shows the positive histograms resurfacing as the fast and slow lines avoid a bearish crossover at the zero line. Hence the technical indicator displays a rise in the buying pressure promoting bullish growth.
The RSI indicator shows a sharp V-shaped reversal from the halfway line displaying a jump in the underlying bullishness. Furthermore, the price jump surpasses the 50-day SMA, making the 100-day SMA the next crucial resistance.
In a nutshell, COMP technical analysis displays a high probability of a bullish trend surpassing the $55 level and reaching the $75 mark.
Upcoming Trend
If the buying pressure sustains throughout the day, traders can definitely find the closing price surpassing the $55 mark. In such a case, the breakout rally is expected to continue and reach the $75 resistance level.
Conversely, a reversal from the $55 mark will result in a double top formation with a neckline at the $45 mark.
Resistance Levels: $60 and $75
Support Levels: $50 and $45