Possible retest of major resistance level (potential 20% gain)
Updated
Disclaimer: I am not a professional trader and this is not financial advice, just an idea of what I see. I am currently simply trying to get in the game, learn and only bet very tiny amounts (10$ per trade). I am not a day trader, I'm looking for opportunities on longer time frames (daily charts). I also use only very simple indicators like moving averages.
What I see on the chart:
ZRX has been on a strong uptrend for about 2 months now. It hit a major resistance level in the 4000 to 4500 satoshi level and got rejected from it.
The daily 50 MA has crossed the daily 200 MA 10 days ago, which is usually a rather bullish sign.
ZRX is bouncing of the lower end of its trendline
There is a very clear cup and handle formation on the chart.
Entry: watch what ZRX does near the trendline (does it bounce back up, does it fall through?)
Stop : around 2850 satoshis
Take profit: if the bounce is confirme, take some profit when we retest the resistance level (~20% gain from current price).
What I see on the chart:
ZRX has been on a strong uptrend for about 2 months now. It hit a major resistance level in the 4000 to 4500 satoshi level and got rejected from it.
The daily 50 MA has crossed the daily 200 MA 10 days ago, which is usually a rather bullish sign.
ZRX is bouncing of the lower end of its trendline
There is a very clear cup and handle formation on the chart.
Entry: watch what ZRX does near the trendline (does it bounce back up, does it fall through?)
Stop : around 2850 satoshis
Take profit: if the bounce is confirme, take some profit when we retest the resistance level (~20% gain from current price).
Note
It looks like we closed below the lower trendline on the chart. We are however still holding the 50 daily MA and are still above the 200 daily MA by roughly 10%. The above is still valid.If we close below the 50 daily MA and start going for the 200 daily MA, this might take a bearish turn in the short term.
Note
ZRX breached it's lower trend line a few days ago, went through a tiny support and is now headed for a larger support around 2800-3000 satoshis which coincides with the 200 daily MA. Ensure your stop loss is setup correctly (stop in the 2800 range and a sell order a tad below should things really take a turn for the worse.
IMO, the handle formation is still valid as long as we are still above the 200 daily MA.
Disclaimer
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