ONT faces strong resistance from the 20-day EMA. Also, ONT is trading below all the moving averages which shows the bears have the power at least in the short term. ONT has corrected close to 78.6% of the entire rally from the low of $0.40 to $2.17 and this is also a negative sign.
Although ONT has rebounded from the uptrend line, the 20-day EMA needs to be scaled to resume the uptrend. If ONT remains under the 20-day EMA, a retest of the uptrend line is more likely to happen again. It is very important support, if it is successfully broken down, a retest of the recent lows of $0.40 will be in the cards.
There are not any reliable buy setups, thus, traders shouldn't open any fresh positions at the current situation.
Although ONT has rebounded from the uptrend line, the 20-day EMA needs to be scaled to resume the uptrend. If ONT remains under the 20-day EMA, a retest of the uptrend line is more likely to happen again. It is very important support, if it is successfully broken down, a retest of the recent lows of $0.40 will be in the cards.
There are not any reliable buy setups, thus, traders shouldn't open any fresh positions at the current situation.