Potential entry on ZIL 4H chart
After an incredible run-up from listing ZIL has finally begun to pull back. The question for Binance traders is 'When is a good time for me to buy this?'.
We can see on the 4H chart that there was alot of interest around the .618 fib support line, but this failed to generate enough momentum to break the 50MA to the upside. Stoch is now clearly rolling over from overbought, the RSI is dipping beneath the support level for the previous uptrend and the MACD is printing a sell signal. The balance of probability with these indications is that buying at the .618 has now been exhausted and the price will find support at a lower level before testing upwards again.
The TDS count of a red 4 suggests a full bearish impulse of a 9 count to the downside is likely with the 200MA moving up under the price to offer a likely level of support. I have charted a trend line from the last bounce from support to the likely intersection of the price and the 200 MA. Should the TDS make a 9 buy around this level we have a very strong signal to enter this trade, allocating half to the entry with the expectation of doubling down once a reversal candle has formed and the price is trading above that. Setting an alert for the TDS 9, is key to timing this trade to catch the wick of big reversal candle as it forms.
Targets to the upside
1600, 1800, 2000, 2400
An entry at around 1500 to sell at resistance at 2400 will yield 60%. Initial goal will be a break-even stop to eliminate risk from this trade.
We can see on the 4H chart that there was alot of interest around the .618 fib support line, but this failed to generate enough momentum to break the 50MA to the upside. Stoch is now clearly rolling over from overbought, the RSI is dipping beneath the support level for the previous uptrend and the MACD is printing a sell signal. The balance of probability with these indications is that buying at the .618 has now been exhausted and the price will find support at a lower level before testing upwards again.
The TDS count of a red 4 suggests a full bearish impulse of a 9 count to the downside is likely with the 200MA moving up under the price to offer a likely level of support. I have charted a trend line from the last bounce from support to the likely intersection of the price and the 200 MA. Should the TDS make a 9 buy around this level we have a very strong signal to enter this trade, allocating half to the entry with the expectation of doubling down once a reversal candle has formed and the price is trading above that. Setting an alert for the TDS 9, is key to timing this trade to catch the wick of big reversal candle as it forms.
Targets to the upside
1600, 1800, 2000, 2400
An entry at around 1500 to sell at resistance at 2400 will yield 60%. Initial goal will be a break-even stop to eliminate risk from this trade.
Note
So we never got the 9 on this countdown, which invalidates this idea for now. Even though the price reversed from the trend line it did not have the momentum to break the resistance from the 50MA for a third time. Here the price has gapped lower by more than 1% on candle open to give a technical short entry on the TDS count. This is very rare for crypto and i don't expect the trend line to support the price another time with so much bearish momemtum bearing down on it. Watch out below.
The good news is that we may get a full capitulation to buy into sometime in the next few days.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.