COMP Technical Analysis: Bearish Influence Over Triangle Adds Pressure

The COMP Technical Analysis displays a bear cycle starting in a symmetrical triangle, giving a short-term selling opportunity. The COMP price action forms a symmetrical triangle pattern in the daily chart with a long-coming support trendline. However, the recent bear cycle starting from the overhead resistance of the resistance trendline comes with a double top pattern. Hence, the possibility of a bearish breakdown of this continuation pattern increases. Key Points: The Compound prices show a bear cycle in the triangle pattern. The power struggle at the resistance confluence remains crucial in upcoming trend selection. The intraday trading volume in Compound is $94.5 Million. Source – TradingView COMP Technical Analysis The COMP price takes a bullish reversal from the $27.75 support level to reach the resistance of $66 close to the 100-day EMA last month. However, the increased selling pressure and opposition EMA result in a bearish turnaround with a higher price rejection leading to a symmetrical triangle pattern. After the recent bull cycle, close to the ascending trendline at $44, the buyers reach the 100-day EMA. But the bullish failure leads to a double top pattern and projects that a bear cycle is restarting. The spike in the intraday trading volume coincides with the higher price rejection in the previous daily candle, supporting the possibility of a bearish turnaround. Hence, sideline traders can expect a short-term se...