ALT MARKET CAP (TOTAL2) has successfully flipped the previous strong resistance level into support. The price is expected to continue to rise in the near future.
Weekly Outlook
ALT MARKET CAP (TOTAL2) has been trading below the 20-week EMA since the beginning of April 2022. This line has rejected the price many times, most recently at the end of October 2022 (red arrow). This rejection led to a low of $430 billion in November of that year.
However, the price has since risen and broken above the 20-week EMA ($517 billion) with a large bullish candle. This is a very important development because this line is often used to determine the long-term trend. Therefore, this shows that the long-term downtrend of TOTAL2 may have ended.
Further confirmation for this assertion is that the price has also broken above the descending wedge pattern and confirmed it as support in the week of March 6 to 13 (green arrow).
Therefore, TOTAL2 may continue to rise to the horizontal resistance level at $700 billion and higher to the range of $844-941 billion, formed by the horizontal resistance zone and Fib 0.5-0.618.
The RSI indicator supports this possibility as it has formed a significant bullish divergence before the entire upward move and is above 50.
Bullish pattern
The daily chart supports this view with the formation of an inverse head and shoulders pattern. This is a bullish pattern, which usually leads to a trend reversal to the upside.
The RSI indicator has now broken the bearish divergence line and is above 50. RSI breakouts often occur before price breakouts.
Therefore, TOTAL2 is likely to break out of this pattern in the coming days. The target of the pattern is $795.6 billion, calculated by connecting the height of the pattern to the breakout point.
During the move towards this target, there is a small resistance level at $700 billion. However, this level may be overcome as this head and shoulders pattern has lasted for more than 6 months.
Conclusion
Overall, the most likely outlook is that TOTAL2 will break above the neckline of the inverse head and shoulders pattern and rise at least to the $700 billion resistance zone.
This view will be invalidated if the price falls back below the 20-week EMA.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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