• Chiliz price near breakout from a flag continuation pattern.
  • CHZ bringing blockchain technology to the world of sports.
  • Jump Trading equity investment will expand the fan token ecosystem globally.

Chiliz price steadily declined in a flag pattern for weeks, but it closed last week with a hammer candlestick. The successful shakeout below the flag’s lower trend line combined with the test of the 61.8% retracement of the February-March rally has positioned CHZ in a timely position for purchase in the coming days.

Chiliz price action shows that bulls are now in control 

A steep, sharp price trend precedes flag patterns, and in the case of CHZ, the February-March trend rallied over 3000%. Flags that are preceded by a rally of at least 90% have almost a zero failure rate and an average return of 69%. The best flags are less than 15 days, and volume declines throughout the pattern formation

CHZ closes last week with a hammer candlestick that successfully tested the low of the flag and the 61.8% retracement level before engineering a rebound to close with a real candle body no larger than a third of the hammer pattern range. 

The hammer pattern provides speculators with a clear trigger price at the hammer high of $0.541. The first area of resistance for the new rally is the 50% retracement of the March-April correction at $0.670, followed by the 61.8% Fibonacci retracement at $0.742.

A rally of 69% targets $0.914. If volume accompanies the rally, CHZ should not have any problem testing the March high at $0.976.

CHZ/USD weekly chart

CHZ/USD weekly chart

A breakdown below the hammer will be met quickly with support at the 10-week simple moving average at $0.346. If selling accelerates, speculators need to mark the 78.6% retracement of the February-March rally at $0.233.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Ethereum Classic price ignores the Bitcoin charge, but ETC still nears a 70% rally

Ethereum Classic price claimed the enduring 2018 high at $47.00 last week with a 15.7% surge from the midline of the descending parallel channel, triggering better outlooks for ETC.

More Ethereum Classic news

Dogecoin price raises more questions than answers, while DOGE threatens a decline

Dogecoin price rebound remains unvalidated as the cryptocurrency fails to register one close above the midline of an ascending parallel channel since the July 21 breakout. Without greater conviction ...

More Dogecoin news

Shiba Inu Price Prediction: SHIB is dead money below $0.00000733

Shiba Inu price was presented with an opportunity on July 21 as it released from a minor parallel channel and the cryptocurrency complex initiated a new rebound that has taken on an impulsive personality. Instead, SHIB has drifted sideways ...

More Shiba Inu news

Top 3 Price Prediction: BTC energizes risk-on narrative with longest winning streak in 2021

Bitcoin price is on pace to close with eight consecutive up days for the first time since December 2020 and has registered an eight-day return of 33% at the time of writing, marking the best gain since the February breakout from ...

More Bitcoin news

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP