Fantom (FTM) hits its highest daily close ever
Fantom (FTM) barely made a new all-time high and has been falling ever since. She is currently looking for support.
Highest degree ever
FTM has been moving up at a brisk pace since Dec 30 when it confirmed the previous descending resistance line as support. The upward move led to a high of $3.37 on Jan. 17. Although this is below the all-time high of $3.48, the Jan. 16 close was the highest in history.
Currently, FTM is attempting to stay above the $3.15 horizontal zone. This zone previously acted as resistance and is expected to act as support. Therefore, the current daily closing price is very important for future development. A close above this level would confirm this zone as support and potentially lead to a new all-time high.
However, the six-hour chart suggests that a short-term pullback may be on the cards before the ongoing rally resumes.
The main reason for this is a bearish divergence that has formed on both the RSI and MACD (green line). This usually precedes down moves.
If the pullback occurs, the key support area is $2-$2.26, 0.5-0.618 Fib retracement support.
This would be an ideal spot for FTM to make a higher low and then continue its upward move.
Between October and December 21st (highlighted) there was significant overlap in decline. Therefore, the decline is likely to be a correction, while the sustained rise is the start of a new long-term uptrend.
So, if FTM makes a new all-time high, the next resistance will be $4.85. This zone was found using the external Fib retracement level of 1.61 on the drop mentioned above.
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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