ZECUSD
With the fork over and done with, as we were looking at LTCUSD yesterday we are going to keep looking at the ALT coins for trading opportunities.
Daily
On the daily time frame we have been tracking ZEC since the hype pump that resulted in a dump. Ignoring that long wick, a double top is actually observable. Since the price has trended lower in low volatility. A bearish cross of moving averages has occurred with the 30 & 68ema falling below the 170dma. It is important to remember however, moving averages are delayed, a backward-looking indicator. Nevertheless, they are important and act as areas of support and resistance and represent supply zones.
A small trendline can be drawn from the previous low on ZEC to the current low and bulls would like to see this hold as it would be the start of a new series of higher lows - price progression.
Resistance was found at the 170dma 2 days ago as we see the price sold off after hitting that area of resistance. The stochastic RSI is trending down with the price as is the RSI while the MACD is holding quite a divergence but remains relatively flat and close to the zero line.
This consolidation is in low volume and this is typically bullish after a price sets a new high and pulls back.
4 hour
On the 4 hour time frame, we see the price had tested a convergence of the 68ema and 680dma at the pivot. This created a strong area of resistance and is where the price pulled back from. The price was unable to hold the 30ema and if we retest the trendline, bulls need to put up some defense.
The stochastic RSI on the 4 hour has pushed into an uptrend and the MACD is about to produce a bullish cross. With volume this could become a solid move and bulls should be looking for ZEC to reclaim the pivot on this time fame approximately $224.
During this slight downtrend, the RSI had reached oversold upon touching the trendline and is in part why it bounced, it was oversold.
1 hour
The 1 hour time frame is a little worse off and conflicts with our 4 hour. It is likely to see the stochastic RSI full cycle here as the price failed to reclaim any moving average support or pivot support. We are now observing a bearish cross of the 30ema below the 68ema, caution is warranted and it certainly appears that ZEC will retest the lower trendline support. If it fails we look just below to the S1 pivot, $196 to act as support.
The stochastic RSI has begun trending down, but a trendline can be drawn on the RSI showing progression, or strength of the holders (dip buyers).
We are watching the MACD for a bear cross - it is only detrimental to reversing the downtrend if it occurs on volume, otherwise the price will continue consolidating.
Bullish Above: $225
Bearish Below: $196 s1 pivot 1 hour
RISK TRADE: Scale into a long position up to trendline, approximately $205, take a loss if price loses S1 pivot.
Don't forget to use stop losses!!!
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Follow at your own risk, Not a financial adviser, understand the risks associated with trading and investing. Manage your own Risk - in other words you could lose it all and it's your own fault.
