Quant (QNT) is currently experiencing significant market volatility, presenting a nuanced technical landscape for investors. While broader market movements have created a cautious environment, QNT's price action reveals a fascinating interplay between its short-term bullish momentum and longer-term structural concerns.
Contrasting Price Structures
A deeper look into Quant's price charts reveals conflicting signals. On a weekly timeframe, QNT's structure appears bearish, marked by a recent drop below the former higher low at $85.52. This suggests a continuation of a downward trend in the longer term. However, the daily chart paints a more optimistic picture. It displays a bullish structure, having successfully defended the critical 78.6% Fibonacci retracement level at $75 in November and subsequently forming a new higher high. Despite this, a key resistance at $105 from September, along with a significant supply zone just under the psychological $100-mark, proved challenging to overcome, leading to a recent retracement.
Indicator Health and Key Levels
Analyzing Quant's indicators provides further insight into its potential trajectory. The On-Balance Volume (OBV) on the weekly chart has been trending lower since August, yet recent buying activity has shown a notable surge, reaching a new high. If this demand can be sustained, it significantly boosts QNT's chances of recovery. Similarly, the Relative Strength Index (RSI) is on the verge of turning bullish on the weekly chart and already exhibits a steady bullish trend daily. Collectively, these indicators suggest that further upside is plausible after the current market reset. Traders should closely monitor the $110.8 level, as a decisive breach would signal a bullish shift in the weekly structure. A dip to the $85.7-$88 range is anticipated in the short term, likely presenting a buying opportunity. Should the crucial $85 support zone hold, QNT could target a rally towards $135, but a drop below $75 would indicate significant bearish strength.
