Trade Recommendation: 0x (ZRX)

0x ZRX

Our February 16, 2019 trade recommendation for 0x (ZRX/USD) hit its target. Those who stuck to the trade plan grew their investments by over 57% when the market climbed as high as $0.3456 on April 1st.

While 0x exceeded our price target, we were happy to take profits because the market looked overextended. It was trading in overbought territory so it was only a matter of time before it corrected. Our expectations became a reality on April 3rd when the market started to pull back. Now, we have an opportunity to buy the dip.

Technical analysis shows that ZRX/USD is painting a large inverse head-and-shoulders pattern on the daily chart. The structure has been in construction for about six months now. We give the market about a month or so before it finally explodes out of accumulation.

Before it does, we expect it to correct one last time to support of $0.30. That level should hold because our three moving averages (MAs) such as the 50-day MA, 100-day MA, and 200-day MA are all crawling at that level and acting as supports.

The strategy is to buy on dips as close to $0.30 as possible. As long as 0x trades above this level, bulls will likely gather the momentum to hit our initial target of $0.398. Take that out and 0.50 is next.

The process may take less than a month.

Daily Chart of 0x/US Dollar on Bitfinex

0x chart
As of this writing, the 0x/US Dollar pair is trading at $0.3252 on Bitfinex.

Summary of Strategy

Buy: As close to $0.30 as possible.
Target: $0.398 and 0.50.
Stop: $0.285

 

Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.