Atom (ATOM/USD) was up over 10% on Tuesday and has given a breakout after a month of consolidating, Atom is looking very strong for the coming weeks and it could also hit a new all-time high soon. However, is it too late to enter on Tuesday after the 10% spike?
The charts for October-
- Atom has formed a descending triangle in October and has been rejected from the trendline multiple times in the past few weeks however it finally gave a strong breakout on Tuesday.
- The breakout on Tuesday was also indicated by the bullish RSI divergence formed earlier this week.
- Investors still have to be cautious as volumes are not extremely high and have just started increasing, however, they are expected to rise on Wednesday alongside a continuation of the rally.
- For investors not willing to take on a lot of risk, the first target can be set at $40, a target of a new all-time high can also be set by investors willing to take a higher rise
- If Atom is able to continue with the same momentum it has shown on Tuesday, a new all-time can be hit very soon.
- A stop-loss can be set at $32.
Is it too late to enter on Tuesday?
- After a sharp rally on Tuesday, the RSI was in the overbought zone and also formed a bearish divergence, which is indicating towards a small pullback before a continuation of the rally.
- Atom also showed some high selling volumes after rallying, showing that selling pressure is slowly rising and that a small pullback will be seen soon.
- A long entry can be taken at $37 which is a demand zone and should also be the point from which Atom could resume it’s rally.
After a strong breakout on Tuesday, a huge move can be expected and investors can take long entries once a small pullback is seen with targets above the all-time high.