Compound (COMP) Price Analysis: Bullish Volatility Expansion into Price Discovery, Structural S/R Breached with Conviction

By Sunil Sharma and Aziz Khan
Published January 31, 2021 Updated January 31, 2021
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Compound (COMP) Price Analysis: Bullish Volatility Expansion into Price Discovery, Structural S/R Breached with Conviction

By Sunil Sharma and Aziz Khan
Published January 31, 2021 Updated January 31, 2021

Compound (COMP) price has entered price discovery mode following Bitcoin and LINK. Key takeaways from today’s Daily COMP price analysis.

  • Local S/R and Bullish Volatility Expansions
  • Structural S/R Breached with Fibonacci Extension Targets
  • Volume Influx & RSI Bullish Control Zone

COMP Price Analysis: COMPUSDT Price Action Daily Chart

Compusdt
Chart by Tradingview

Preluding to the chart above, COMP Price Action found acceptance above the Local S/R before a strong expansion. This acceptance confirmed a Local S/R Flip Retest in a volatile zone, showing strength in the immediate short-term.

The Structural S/R was immediate resistance that got breached with conviction, allowing for COMP Price Discovery. Price Action of current is testing Key Fibonacci Extension targets that are posing as resistance.

A rejection of the 1.414 Extension has occurred, increasing the probability of a relapse into the Structural S/R for a flip retest confirmation.

The current Volume Profile is reading a clear influx as this rise in COMP price Action came to fruition. It is important for Price Action to have sustained follow through, failure will be indicative of weakness. The RSI is currently maintaining its Bullish Control Zone, remaining in these regions is acute for further upside.

Hope this article helps when making discretionary decisions.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Aziz Khan
11 Articles
Aziz is an experienced crypto technical analyst and day trader for the past three years going on four. Being a self-taught trader of 5 + years in this field, he has accomplished top status on Trading-view with daily detailed analysis on trending coins. You can follow Aziz on twitter and TradingView

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