Yesterday on 4 hour chart the priceline of Pundi X was forming a bullish BAT pattern and it was likely to complete the final leg of this move.
As per Fibonacci sequence of bullish BAT move it was expected that the last leg of NPXS will be retraced between 0.786 to 0.886 Fibonacci level. And from there it will take the bullish divergence. But the price line went close to the potential reversal zone that was supposed to be started from 0.786 Fibonacci level and could not enter the potential reversal zone completely as below.
Caught in wedge and 100 SMA strong support:
If we examine this 4 hour chart more closely then it can be clearly seen that the priceline has formed a Wedge pattern. And Pundi X is moving within this wedge. The priceline broke down the 100 simple moving average on 24th of Feb and also broke down 200 simple moving average on 26th Feb. And after breakdown of these two supports we have witnessed a really very strong bearish trend on 4 hour chart. Finally the priceline is caught within this wedge and now it is being consolidated here. And crossed up 100 simple moving average. When the price action was forming the last leg of bullish BAT pattern which we have discussed earlier at that time the NPXS also had strong support of 100 simple moving average therefore in order to complete the last leg the price line needed to break down the support or atleast hit spike beyond the support of 100 SMA. But the priceline was not able to hit the price beyond this support level and got a powerful bounce from 100 simple moving average. Now it is expected that it will make an attempt to breakout the resistance of the wedge and if the price action will be able to breakout the resistance then it will use this resistance as support and using this support Pundi X might make an attempt to breakout the next resistance level of 200 simple moving average. And once it will break out the 200 SMA as well then we can see the bullish movement even on the bigger charts as well.
As per Fibonacci sequence of bullish BAT move it was expected that the last leg of NPXS will be retraced between 0.786 to 0.886 Fibonacci level. And from there it will take the bullish divergence. But the price line went close to the potential reversal zone that was supposed to be started from 0.786 Fibonacci level and could not enter the potential reversal zone completely as below.
Caught in wedge and 100 SMA strong support:
If we examine this 4 hour chart more closely then it can be clearly seen that the priceline has formed a Wedge pattern. And Pundi X is moving within this wedge. The priceline broke down the 100 simple moving average on 24th of Feb and also broke down 200 simple moving average on 26th Feb. And after breakdown of these two supports we have witnessed a really very strong bearish trend on 4 hour chart. Finally the priceline is caught within this wedge and now it is being consolidated here. And crossed up 100 simple moving average. When the price action was forming the last leg of bullish BAT pattern which we have discussed earlier at that time the NPXS also had strong support of 100 simple moving average therefore in order to complete the last leg the price line needed to break down the support or atleast hit spike beyond the support of 100 SMA. But the priceline was not able to hit the price beyond this support level and got a powerful bounce from 100 simple moving average. Now it is expected that it will make an attempt to breakout the resistance of the wedge and if the price action will be able to breakout the resistance then it will use this resistance as support and using this support Pundi X might make an attempt to breakout the next resistance level of 200 simple moving average. And once it will break out the 200 SMA as well then we can see the bullish movement even on the bigger charts as well.
