After running out of room in the symmetrical triangle, ONT has spoken which way she wants to go:
After a lot of sideways action lately, we have funneled into a tight range and busted through to the upside. Our volume on the break was very nice and our MACD is starting to accelerate upwards from negative to positive territory. Our RSI is pretty overbought so be careful trying not to chase the entry. Wait for a retracement, or a back test of the top of the symmetrical triangle. Our measured move target out of the triangle sits at 3700 SATS. This is a pretty critical area considering we would be breaking our long term diagonal trend line (blue dotted line).
Also to note, the RSI hasn't seen strength this high since August which is great. We are also above all your moving averages and the 20MA is about to cross over the 50MA. This is bullish for the short term as this is in a 4HR chart and the moving averages aren't too distant from one another. None the less, its bullish so we can be optimistic for now. Our 200MA hasn't got the memo were moving up as its still trending down so we'll need more of this upward movement to start seeing him join the party.
What we need going forward to maximize this bullish state:
Well, we need to first break this diagonal trend line with volume and start heading towards the measured target. We could get hit with a little resistance at these areas which ok, but we need to eventually break it. If we do decide to break these areas, our next target is our swing high on the 21st of Sept at 4085 SATS. That would convince me even more that more bullishness is coming on a longer time frame.
We've seen fake outs before, and this could very well start spiking down, so the main thing we need to watch for is how ONT acts when we get to key areas of resistance and shown on the chart. In the meantime, we can just stay cautiously optimistic and enjoy the break up out of the triangle. The next few days should give us a better hint whether we can validate this shorter scaled bullish pattern.
Good luck!
