Hey dear friends, hope you are well and welcome to the new update on the Pundi X
A Fake out:
The price action of Pundi X formed a symmetrical triangle on a 4-hour chart and broke out the resistance. After breaking out it also re-tested the previous resistance of the triangle as support but could not close above the high of the breakout candlestick and moved down and even broke down the support of the triangle.
A new descending triangle formation:
After breaking down the symmetrical triangle the price action has found support at $1.53. Now if we connect all the confluence points of resistance and support then a new descending triangle has been formed and the target for this triangle can be $2 in case of a breakout.
https://www.tradingview.com/chart/PUNDIXUSDT/QnbP0EPt-Do-Not-Sell-Your-Pundi-X-After-This-Fake-Out/
Different support and resistance levels:
After the drop of 19th may, the price action of Pundi X has found new support at $1.53. The next resistance is at $2. The $2 can be the most strong resistance as it has been working as a strong support previously:
Different indicators:
On the 4-hourly chart the price action has moved below the Ichimoku bullish cloud now it can work as a resistance.
If we take a look at the Directional movement index then there is a sell signal appeared. Once it will give the bullish signal then we can expect another attempt for the powerful breakout.
Conclusion:
The price action has broken down the triangle but it was due to some market manipulation therefore the price action stopped at the next support. Now for any big move, we should wait for the breakout from this newly formed triangle and the $2 resistance level.
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