MCOBTC Rising Wedge | Bearish Divergence | Correction?

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Hello Traders,

Today’s chart update will be on MCOBTC, where we have had a potential Adam and EVE bottom from yearly lows. Price is now testing key support that needs to hold, however we are seeing bearish signs such as the bearish divergence..

Points to consider,
- Trend is considered bullish with lower highs
- Major Resistance broke, now support
- Local resistance at 5632 Satts
- Stochastics projected downwards
- RSI diverging from price
- EMA’s holding support
- Volume below average

MCO is at a critical point in its trend where we do see multiple bearish signs in the chart. The trend is bullish however is testing key support in a falling wedge formation, a correction into the zone is more likely to be at play.
Major Structural resistance has been broken from yearly lows; MCO needs to hold current area to confirm an S/R flip. Local resistance however is at 5362 Satts, the VPVR between the two segments show a decrease in the volume of transactions. This signals that bulls are more likely to test local resistance due to low levels of transaction…

The stochastics is projecting more probable downside potential; bears have stored momentum if a correction does play out. RSI is currently diverging from price; this puts more emphasis on the bearish divergence as price puts in consecutive higher highs whilst the RSI puts in lower highs.

The EMA’s is currently holding support which is in confluence with structural support, making the zone more significant for the bulls. Volume is well below average, we needs to see an influx of volume if price where to break and or bounce from current area…

Overall, IMO, MCO is more probable to have a correction as we do see multiple bearish signs, we have a rising wedge formation in confluence with a bearish divergence. Volume is also extremely low; we need to see an influx of bull volume if price were to have a chance of respecting key support.

What are your thoughts on MCO? Will we have a correction here?

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And remember,

“Time is your friend; Impulse if your enemy “- John Bogle