ENJ Technical Analysis: Triangle Pattern Holds The Upcoming Trend
Table of contents
Key technical points:
Past Performance of ENJ
The downfall under the influence of a highly bearish resistance trendline dropped the ENJ prices by 50% over the last month. Finally, the buyers overtook the train control at $0.40, forming a support landline. Hence the price action creates a symmetrical triangle pattern in the daily chart with the 50-day SMA moving along with the resistance trendline.
Source- Tradingview
ENJ Technical Analysis
ENJ price Action showcases a bullish retracement within the symmetrical triangle and a rise in the trading volume. However, the higher price reaction in the daily candle opposes the bullish growth increasing the chances of a bearish fallout. The MACD indicator Showcases a bullish trend of the fast and slow lines avoiding multiple crossover events. Hence the indicator showcases a bullish trend in motion, increasing the likelihood of a bullish breakout.
The RSI indicator Showcases surrounding reversal in the nearly oversold zone resulting in a jump over the 14-day average line and the halfway line. However, this line showcases a slight bearish divergence in the last two peak formations at the resistance trend line and warns of a retracement to the support trendline. Hence the technical indicators maintain a bullish trend in motion, but the growing bearish influence may trigger another resonance within the triangle pattern. In a nutshell, the ENJ price analysis suggests the traders wait for the price action confirmation before taking a bullish trade.
Upcoming Trend
ENJ buyers can expect the prices to break above the 50-day SMA resulting in the triangle breakout. The breakout rally shows the potential to reach the 100-day SMA at $0.80.
Resistance Levels: $0.57 and $0.80
Support Levels: $0.50 and $0.40