QNT Technical Analysis: Quant Buyers Challenge The Inevitable

The QNT price action shows a morning star pattern forming at the 100-day EMA leading the prices back above the psychological mark of $100. The resurging buying pressure with the 4.84% bullish candle attempts to avoid a drop to the $88 mark. So, should you take a bullish entry, or is it just a trap for buyers?

Key Points:

Source - TradingView

QNT Technical Analysis

As mentioned in our previous article, the QNT prices failed to sustain above the $100 psychological level, leading to a price drop to the 100-day EMA. The price action displays a recovery rally struggling to reach the 23.60% Fibonacci level at $112. Furthermore, the recovery rally challenges the head and shoulder possibility in the daily chart with a neckline at the $88 support level.

The spike in the intraday trading volume increases the recovery rally momentum, but the Doji candle forming in the daily candle questions the bullish follow-through. Additionally, despite the prices sustaining above the 50 and 100-day EMA, the buyers must overtake the 200-day EMA for further growth.

A bullish breakout of the 23.60% Fibonacci level will unleash the trapped bullish momentum resulting in a jump to the $133 mark.

However, a bearish reversal from the $112 mark will increase the possibility of a downfall to $88, leading to a head and shoulder pattern.

Technical Indicators

The RSI slope shows a reversal from the 14-day SMA to rise above the halfway line and maintain an uptrend. Moreover, the MACD and signal lines support a lateral trend below the zero line with a constant tendency in bullish histograms. As a result, the QNT Technical Analysis highlights a crucial turning point at $112. And the traders hoping for further recovery must wait for the prices to close above $112.

Resistance Levels - $112 and $133

Support Levels - $88 and $75