After Civic has found the bottom at $0.15, price went up and broke above the downtrend trendline, reaching $0.21 high. Then price went down hitting 78.6% Fibonacci retracement level support at $0.16, which has been rejected along with the uptrend trendline.
The next wave up resulted in a new higher high and break above the 50 Moving Average, suggesting that the correction upwards might continue. CVC/USD is expected to move higher, targeting 38.2% Fibonacci level at $0.28, that is also confirmed by the 227.2% Fibs applied to the corrective wave down after the trendline break.
If $0.28 resistance is broken, CVC could go higher, towards 50% Fibs at $0.32 or even 61.8% Fibs at $0.36. On the other hand, if $0.28 resistance is rejected, the downtrend continuation or consolidation could begin.
While the corrective wave up is anticipated, the downside risk still remains valid, where break and close below the $0.15 support would invalidate bullish outlook.
The next wave up resulted in a new higher high and break above the 50 Moving Average, suggesting that the correction upwards might continue. CVC/USD is expected to move higher, targeting 38.2% Fibonacci level at $0.28, that is also confirmed by the 227.2% Fibs applied to the corrective wave down after the trendline break.
If $0.28 resistance is broken, CVC could go higher, towards 50% Fibs at $0.32 or even 61.8% Fibs at $0.36. On the other hand, if $0.28 resistance is rejected, the downtrend continuation or consolidation could begin.
While the corrective wave up is anticipated, the downside risk still remains valid, where break and close below the $0.15 support would invalidate bullish outlook.
Trade closed: target reached