15.12.2020 | 23:00
The COMP trades between the support at $ 130 and resistance at $ 175.
The next areas of resistance can be found at $ 200 and $ 230.
The COMP follows a short term ascending support line as well as a longer term one.
The Compound (COMP) price has been declining since the rejection on December 8 by the 0.5 fibonacci retracement level. However, it appears to have halted its decline and should continue to move closer to the targets stated in this article.
Progress followed by rejection
The price of COMP has been rising since it hit a record high of $ 80.62 on November 3. On December 5, COMP broke through the old resistance at $ 130, validated it as support, and then continued to rise. That said, it was rejected by the $ 176 fibonacci retracement level 0.5.
Technical indicators are neutral, with a bullish lean. The Stochastic Oscillator has made a bearish cross, while the MACD and RSI are higher. The Financial Peak also generated a large hidden bullish divergence.
If the COMP breaks its resistance, the next resistance zones would be at $ 200 and $ 230, which is the fibonacci retracement levels 0.618 and 0.786.
The six-hour chart shows the COMP following two ascending support lines. The first, long-term, has been in place since the previous low on November 3. The second is shorter term and dates from December 6.
At the time of writing this analysis, the COMP is trading above the short-term line and minor support at $ 140. This is an area he has just regained
If price breaks below that line and below $ 140, the next support zone will be at $ 128. The latter coincides with the longer term ascending support line.
The short-term two-hour chart shows that the short broke through a descending resistance line (dotted) in addition to the support levels described earlier.
Once the COMP successfully crosses the $ 159 mark, the 0.5 Fibonacci retracement of the previous decline, it is expected to continue to rise at an accelerated pace.