What is COMP up to? #trading

12 Jul 2023 · 1 min

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In this video, the speaker provides a technical analysis of the Compound (COMP) cryptocurrency, noting that over the past year COMP has traded within a roughly 100% price range bounded by a clear low and high. He emphasizes two key price levels—the range low and the range high—and points out that historically price reversals are likely when these extremes are reached. After a recent aggressive move to a new range high, the speaker warns that the rally could be a "scam pump" and outlines a short‑selling plan. The plan hinges on a confirmed daily candle close below a critical level at $51.64, followed by a modest retracement before entering a short position. He proposes multiple profit‑taking targets, first around $47.8, then a larger move down to approximately $35 (specifically $35.2). The overall message is a cautious, bearish stance on COMP pending confirmation of the short‑entry criteria.

Chapters

Compound for the past year, essentially it's just been trading within a 100% range. There are only two levels that you should really look at: that's a range low and that's a range high. Now history would indicate to us that the chances once you hit a range high or once you hit a range low, the chances of you reversing to the other level is pretty high. As you can see what happened over the last year. So given that new range highs has been taken, I would actually be looking for a short here, especially because this was a fairly aggressive move. Depending on how the next few daily candles close, this could really just be a scam pump. The factor that I would be looking at first. Firstly, it would be simply marking out this level here at 51.64, like a confirmed daily candle body close beneath this level. In fact, you know, if you do get those 2 criteria fulfilled, then I would just wait for a little bit of a retrace back higher in order to short this back down to range lows. And in this case, my target would be a good first TP would be like at $35. A couple of good TP points would be at 47.8 as well as 35.2. That is the scenario that I'm looking at.