Second analysis of the day is Komodo, which was previously mentioned on the 1st of May. We were rather bullish but we acknowledged the possible bearish scenario:
“Few days ago, traders tested the 3,3 USD support (blue) and it was again proven as a buyers stronghold. Our view stays the same. As long as we hold above the blue area, the sentiment is positive and we should see a continuation of the upswing. Breaking the 3,3 USD will cancel the buy signal and will open us a way towards the lows from the middle of the March. „
The price did not manage to climb much higher than it was back in that day. Instead of that, sellers took control and first, established the support on the 2.85 USD and then, broke this area aiming lower. After that, KMD created a pennant (red lines), which resulted with a further drop.
Currently, the price is closed inside of the flag (black lines), which is a trend continuation pattern, so it promotes a further downswing, especially that today, KMD strongly bounced from the horizontal area around the 1.83 USD. As long as we stay below the yellow area, the sentiment remains negative.