KCS Technical Analysis: Evening Star Warns Drop Under $9
Table of contents
Key Technical Points:
Past Performance of KCS
The KCS price action shows a bullish reversal from the $8 mark resulting in the resistance trendline breakout in the daily chart. The bullish trend accounts for a price jump of 25 percent over the last month and exceeds the $9 mark. However, the recent evening start pattern formation at $10 warns of a bearish retracement resulting in a drop under the $9 mark.
Source - Tradingview
KCS Technical Analysis
KCS price chart shows a declining trend during the evening star pattern formation in the trading volume displaying a lack of bearish commitment. Hence, traders can expect a bullish reversal from the next horizontal support level.
The RSI indicator displays an increase in selling please as the slope takes a rounding reversal to dip under the halfway line. Therefore the technical indicator shows a high momentum retest phase threatening a fall under the $9 mark.
Furthermore, the MACD indicator displays a bullish trend in the fast and slow lines maintaining a positive approach to reach the zero line.
In a nutshell, the KCS technical analysis shows a high possibility of a bearish trend continuing with the evening star pattern.
Upcoming Trend
Considering the Kucoin (KCS) price action completes, the evening star pattern formation falling below the $9 mark will undoubtedly test the $8 support level.
Conversely, a bullish reversal with increased buying pressure can sabotage the bearish pattern formation. In such a case, the prices may surpass the $10 mark to reach the 50-day average line at $11.15.
Resistance Levels: $10 and $11.15
Support Levels: $9 and $8