KCS Technical Analysis: Wedge Breakout Changes The Bearish Fate
Table of contents
Key technical points:
Past Performance of KCS
The KCS/USD technical chart shows an overwhelming rise in demand resulting in the rising wedge pattern breakout after surpassing the $15 mark. The bullish rally started after the $13.5 zone breakout accounts for a 25% rise in the last seven days. Moreover, after the bullish breakout, the lower price rejection candles reflect a rise in the underlying bullishness.
Source-Tradingview
KCS Technical Analysis
The uncontrollable growth in the inflation rate brings the KCS market value six cents above $17 and projects a high probability of uptrend continuation.
Furthermore, the uptrend surpasses all the crucial EMAs in the 4-hours chart and influences the bullish crossover of the 50 and 100 EMAs. This points to the golden crossover possibility, which hints at a prolonged uptrend.
As the uptrend enters the overbought territory, the RSI values start to hint at a beamish reversal as the divergence increases reflecting weakness in the underlying business.
The Stochastic indicator shows the K and D lines project a bearish crossover event in the overbought territory. Thus, the indicator indicates an increased chance of a bearish reversal.
In short, KCS prices showcase the EMAs providing dynamic support while the indicators warn of a reversal.
Upcoming Trend
As the KCS breakout rally approaches the $20 mark, the reversal chances grow displayed in the technical indicator. However, the $20 breakout will increase the market value by 10% to reach $22.
Support Levels: $16 and $14
Resistance Levels: $20 and $22
