EGLD: Bullish Pennant

Elrond (EGLD) technical analysis:

Trade setup: Price spiked up to $50 resistance, got very overbought (RSI > 90!) and pulled back. Now it’s consolidating in a Bullish Pennant pattern, which is a continuation pattern and typically resolves in the direction of an existing trend (in this case an Uptrend). In case of a bullish breakout from this pennant, price could revisit $55.

Pattern: Bullish Pennant – forms typically following a sharp advance, followed by a brief triangular shaped consolidation in price (a small change in direction), before the previous uptrend (bullish) typically resumes. The period of consolidation should have lower volume and the breakouts should occur on higher volume.

Trend: Uptrend across all time horizons (Short- Medium- and Long-Term).

Momentum is Bullish but inflecting. MACD Line is above MACD Signal Line and RSI is above 55 but momentum may have peaked since MACD Histogram bars are declining, which suggests that momentum is weakening.

Support and Resistance: Nearest Support Zone is $38 (previous support), then $28. The nearest Resistance Zone is $50, then $54.


The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.