fvideira

COMPUSD - Double three combination correction 09/10/21

COINBASE:COMPUSD   COMP/USD
Downwards breakout price target for ascending triangle was hit. We are now potentially breaking out of this local wedge formation.

The price could be taking the form of a double three combination correction, which consists of two ABC waves (W & X) followed by a final complex correction wave (Y). If this becomes local bottom, it may confirm larger correction wave 2, and also the initial impulse wave 1 from mid-June to late-July. We may be beginning the wave 3 up after June bottom.

Alongside this wave schematic, we have have several technicals to look at:
  • Volume has increased significantly at this local bottom.
  • RSI bullish divergence occurred between the C-E wave, signalling potential slowing of downtrend.
  • BBWP is approaching lows. We can expect price to move somewhat sideways in the coming days with volatility dropping, and should look for BBWP to increase (and break above the white median) while price steadily moves up.

Price target for a confirmed, perfect breakout for this local wedge would be ~25.43% ($390)

This is not financial advice, and always DYOR.
Comment: A wild descending triangle has appeared! Successful breakout may resolve a measured price target of ~14.74%.
Comment: Notice above how the RSI is coiled up and BBWP has been trundling along the lows (volatility dead), while the PA is squeeze-like. A breakout here could blossom into a significant move. Volume has increased significantly here compared to the rest of the range.
Comment: Hmmm... there she blows?
Comment: Jesus Christ that was a long wait. This one might be it, broken topside of range at $335.