Bluzelle (BLZ) Price Could Increase Sharply In The Next Few Days, Here’s Why?
The price of Bluzelle (BLZ) is currently confirming the previous resistance zone as support. If successful, a strong uptrend is expected to follow.
Key Price Levels
The Bluzelle (BLZ) price surged strongly from the support zone at $0.047 during the week of August 7th to 13th (green arrows). This move helped the price break above the horizontal resistance zone at $0.12 and rise to the next resistance at $0.22. This marked a 343% increase over 7 weeks.
Afterwards, the BLZ price was rejected at the $0.22 resistance zone (red arrows) and is currently in the process of confirming $0.12 as support. The $0.12 level is crucial as it has been acting as both support and resistance since January 2021. Flipping this zone into support could signify the end of the long-term downtrend, with the BLZ price expected to retest the $0.22 zone once again.
The weekly RSI indicator supports a bounce from this level, showing significant bullish divergence prior to the upward move and being above 50.
Daily Outlook
The daily chart indicates that BLZ will bounce from the $0.12 zone on the weekly timeframe. This is because the price formed an outside bar candle pattern after bouncing from this support zone yesterday (green ellipse).
Forming an outside bar pattern at a support zone often leads to a trend reversal to the upside in most cases.
Notably, the $0.12 level aligns with the 0.618 Fibonacci retracement zone, which often marks the end of a correction.
In case of an upward move, the nearest horizontal resistance to watch is at $0.16.
Conclusion
Technical indicators suggest that the BLZ price will bounce from the $0.12 support and rise higher in the near future. The nearest target is found at $0.16 and potentially higher towards $0.22.
This outlook would be invalidated if the BLZ price breaks and closes below $0.12 on the weekly timeframe.
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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