As nothing moves in a straight line, Telos (TLOS) experienced a sharp pullback in intraday trading coming off a breakout rally to the upside. As we've discussed previously in these pages, we expected the retrace, the question was where we would find support on the drop. Price tapped $0.19906 before rallying out of the immediate hole back over $0.211. Sellers took control with volume rising on the 1H to print a vector candle:

We can see that price just missed pinning the 200 EMA on the 1H, but managed to flatten the 50 EMA cloud on the same chart. TLOS is entering, at least, a short-term, healthy  consolidation at higher prices shaking out some liquidity that had been trapped in the upper teens. The green line represents the trend line coming off of recent lows. Pulling back a touch, we can see we are still within the macro trend:

Pulling back to the 1D we can see that the August uptrend in volume remains while we can plug in Fibonacci calculations based on the low price during the summer consolidation to yesterday's high at $0.25032:

Yesterday we talked about TLOS finding support in the $0.17 to $0.19 range before resuming the uptrend. In the immediate term, the bullish tendencies can confirm further breakdown and bounce off the 0.5 Fib line at $0.18. Needless to say, bulls had to be encouraged to find support immediately below $0.20 at $0.19906. 

On the 1D, RSI dropped to a cool 63.54 and CCI pulling back to 152.59. Meanwhile, the MACD reflects the short-term cooling-off as TLOS rapid rise these first weeks of August sent the cryptocurrency near over-bought levels, RSI never exceeding 80. 

We will be watching to see if the bounce of $0.19906 was the extent of the short-term retrace or if price will extend to the downside to test support at the $0.18 to $0.17 range. Failure to find support at those levels sends price into the $0.14-$0.16 range, indictive of a less bullish sentiment in the market. On the flipside, a bullish bounce off $0.18 will test resistance around $0.236 before seeking to best its recent high of $0.25032 with further upside as high as $0.36 on an extended rally with sharply rising volume. The ESG blockchain, which consumes less energy than any major blockchain and is striving to be fully carbon neutral and then, eventually, carbon negative, continues to show strength in the month of August.  

Happy trading!