KCS/USD - Downtrend stopped! Rally next? 😍 KCS found good support on the $20 level and is now consolidating in a flat trend. This is a positive sign as it puts a stop to the downtrend and may prepare the stage for an eventual rally in price.
Key support: $20, $16
Key resistance: $23, $28 (ATH)
The market turned back up on Tuesday when both ETH and BTC broke above key resistance levels. KCS also bounced, but this was not so significant and price entered into a range stuck between the key resistance at $23 and support at $20. KCS also appears to have formed a small ascending triangle. Breaking this will likely bring more momentum.
Technical Indicators:
Volume: Volume continued to decrease this week and likely we can expect some new volatility as soon as price leaves the ascending triangle.
RSI: The daily RSI made a higher high, but the current price action lacks conviction. Therefore, to have more confidence in the price action, volume has to increase.
MACD: Good news on the daily MACD as it did a bullish crossover! This is significant and may signal that KCS is preparing to rally soon. Breaking above the ascending triangle will be a good sign that this can take place.
Bias
The bias for KCS is neutral right now. A break above $23 would put KCS back on the bullish side.
Short-Term Price Prediction for KCS
The current price action as well as the MACD seem to suggest that KCS is preparing for a possible breakout from this ascending triangle and an eventual test of the $23 resistance level. If successful, KCS can resume its rally.
Like and follow if you liked my idea!
