QNT Bulls Are Set To Break Through the Overhead Resistance Trendline
When the QNT price rose from the $90 level to retest the broken zone at $100, it displayed a dramatic trend reversal.
The daily chart's bullish engulfing candlestick illuminates a potential buying area for side traders. So, in anticipation of a positive breakout, should you think about purchasing at the current prices?
The lower low trend formation is visible in the price movement. On the daily chart, the 20-day EMA acts as a dynamic resistance. The Quant's $32 Million intraday trading volume indicates a 6% gain.
After the bullish attempt to cross the $130 level failed, the QNT/USD price chart displays a downward trend. A resistance trendline is created on the daily chart as a result of the lower low formation, which restrains the positive rise.
The market value increased by 8.50% in the previous day, resulting in a morning purchase of information around the $90 mark. The bullish reversal pushes the sellers at the resistance trendline and retests the broken supply zone at the $100 level.
The bullish candle pattern is not supported by the intraday trading volume, which raises the prospect of worse price rejection.
A bullish trend extension to the overhead resistance of $130 is however feasible if the prices rise above the resistance trendline. On the other hand, the collapse of the $87 support level may result into a highly peculiar continuation with higher price rejection.
DMI: The DI lines continue to move erratically sideways, although the recent shrinkage of the bearish gap raises the prospect of a bullish crossover.
The daily-RSI slope, which is used to analyse market activity, indicates a positive reversal in the zone that is almost oversold and challenges the 14-day average line. Consequently, the indicators show a rise in the fundamental bullishness.
Levels of resistance: $100 and $130
Levels of support: $90 and $75
