ATOM seen from the temporality of 1W we can observe how the structure of candles has formed a descending wedge maintaining an upward movement within the figure since it found the ground at 0.0002177, in its course the price has managed to overcome the important resistance in diagonal indicated in the chart above by the diagonal red, the closing of the previous candle has tested correctly this diagonal, the shape of the sail is a hammer with strong buying pressure, however, we can notice the strong resistance that is finding in the area of supply located at 0.0004996, indicated in the graph above by the horizontal black color, if the price manages to overcome this zone, we could see a next impulse towards our first gain objective located within the price range of 0.0008087 – 0.0008822, which we can observe in the graph above by the two upper horizontal black color.
ATOM seen from the temporality of 1D we can observe more closely the current movement of candles where we see how the resistance located at 0.0004996 has rejected the price so we could still see a longer decline towards the zone of demand in 1D located within the price range of 0.0003498 – 0.0003709, indicated within the graph above by the two horizontal black, in this area the price should find enough strength to go in search of the break in the area of supply and continue the bullish movement as we see indicated by the arrows drawn within the chart.
In conclusion, ATOM has had an excellent movement since September 2019 managing to overcome the resistance of fall, we should have a continuation of the trend in the short and medium term, for this we need a closing of the daily candle above 0.0004996, our target profit is located within the price range of 0.0008087 – 0.0008822, therefore, I recommend to be very attentive to the action of the price in 1D and always remember to place their stop loss to avoid possible invalidations during the movement.
As I always say, you have to be aware of the movement, invalidations can occur, there is no 100% reliable analysis, take your own precautions when trading.
You can follow me on Twitter: https://twitter.com/armijogarcia
