QKCBTC a bullish reversal pattern at the supportHi friends hope you are well in welcome to the new update on QuarkChain token. This token has surged more than 250% just in 2 month. So in today's article we will try to understand how the QKC token completed the bullish setup and what it can do next.
Formation of pennant:
Almost a year ago in July 2019 I posted an article on tradingview where I revlealed that the price action of QKC is moving within a pennant. And soon it can breakout this penant. Therefore I design my sell targets accordingly. The price action moved with the support of the pennant and somehow below the support as well and finally left the pennant directionless and after moving sideways started a bullish move in Feb 2020.
A wedge movement:
I tried to catch this pattern bit early. But in fact, the price action behaved like a falling wedge instead of pennant. Now if we watch the live chart then the movement of the price action and the pattern is as below:
Down channel, long term bullish signal by directional movement and breakout:
Now if we switch to the daily chart in order to take a closer look on the sideways movement after when the price action left the wedge pattern. Then price it can be observed that the priceline was moving in a down channel since September 2019 up to 22 May 2020. In the meanwhile the price action has made several attempts to break out this channel.
But after 14 Feb 2020 the movement of the price action should be noticed. That the priceline did not move down at support. And it was moving continuously very close to the resistance of this down channel. And if we observe the directional movement indicator then after 8th Feb 2020 the positive direction indicator crossed up the negative directional indicator that is very powerful bullish signal. And we receive a bear cross between these two indicators only from 6th to 12th May 2020 for some time. And the positive directional indicator again crossed up on 14th May 2020. Finally the price action followed this bullish signal that was appeared after 8th Feb and broke out the resistance of this channel.
From support of the channel up to the highest price level this move is more than 250%.
Formation of an up channel:
Now after breaking out the previous down channel. The price action has started its movement within an up channel. The priceline is moving within this channel very well by hitting the resistance and support. At this time the price action of quarkchain has again reached at the support and there are chances that the price action may start a movement to the resistance from here. However we can expect unless this support of the channel will be not broken down the bullish rally will be continued.
A bullish reversal pattern at the support:
Now if we switch to the more small-time 12 hour time period chart then it can be seen that the price action has formed a bullish BAT pattern at the support of the channel. The appearance of a bullish reversal pattern at the support of the channel is very positive signal. All the legs of this pattern are driven perfectly as required for the bullish BAT move, there is only a little bit different from A to B leg retracement level that I have ignored. Now as per Fibonacci sequence the potential reversal zone and the Fibonacci projection area of this A to D leg is as below:
Potential reversal zone 0.00000070 to 0.00000067 sats
Fibonacci projection: 0.00000076 to 0.00000086 sats
So if we buy at the potential reversal zone and sell in the Fibonacci projection area then it can be up to 28% move. However if the priceline will cross up the 0.786 Fib projection of A to D leg that is the maximum extent of Fibonacci projection then the price action can start more powerful bullish rally
