Ontology Price Forecast: ONT breaks out, projecting a 55% upswing
- Ontology price has defined a two-year base.
- Impressive recovery from the December 2020 low driven by heavy buying.
- Handle development is removing the extreme overbought condition.
Ontology price, over the last two years, has carved out a cup-with-handle base with significant upside potential in the short and long-term. Strong volume and an extreme overbought condition demonstrate the upward momentum off the December lows.
Ontology price nearing a Golden Cross
From the December 2020 low to the February high at $1.66, Ontology climbed almost 700% and formed the right side of the cup-with-handle base. The handle may take some time to complete in order for the symmetry of the base to be aligned.
A daily close above the handle high at $1.66 will alert traders to the new opportunity. The immediate upside potential is the 0.618 Fibonacci retracement level at $2.57, representing a 55% gain. A Golden Cross of the 40-week simple moving average (SMA) above the 100-week SMA would further confirm the breakout.
From a longer-term perspective, the outlook is equally bullish with a measured move target of $13.23 exceeding the all-time high of $12.21 and representing a 700% gain from the handle high.
ONT/USD weekly chart
A decline from here will not discover meaningful support until the intersection of the moving averages around $0.74. Slightly below is the downtrend line from June 2020 and then the December low at $0.34.
Author
Sheldon McIntyre, CMT
Independent Analyst
Sheldon has 24 years of investment experience holding various positions in companies based in the United States and Chile. His core competencies include BRIC and G-10 equity markets, swing and position trading and technical analysis.
