Trade Recommendation: Zcash
Yet another cryptocurrency, ZECUSDT, shows a similar chart pattern as the other cryptos, with the Monthly Pivot Range settling in on a tighter proximity to current price levels and a more narrow range. The significance of the low volume and narrow channeling action cannot be overstated as it will eventually give way to a violent move out of the constricted price. This is a foregone conclusion, so we need to be ready with correct levels of support and resistance to know how to play this market.
The 14 Day Pivot Moving Average has been in a sharp downtrend but is now in the late phase when it starts to bulge and begin its slide into a flat pattern awaiting an upturn and crossover to reverse its bias long.
For now we will need to be patient and wait for the market to move through the near term resistance of the Weekly Pivot Range (red/orange dots) while maintaining near term support of the 3 Day Rolling Pivot Range. We want to see the price close above the Monthly Pivot Range high before buying some Zcash money!
If the market unfolds with these bullish conditions, then the buy setup will be a very good risk reward trade.
The action to take is to buy when the price closes above the Monthly Pivot Range high level and place the stop loss below the Monthly Pivot Range low. Place the profit targets as stated.
Entry Price: 307.00
Stop Loss: 261.00
Profit Targets: First profit target 390.00. Second profit target 452.00 Once price reaches first profit target bring the stop loss to breakeven (entry price). Then as price moves higher trail a stop loss 40.00 points back until 2nd profit target is reached or stopped out.
Disclaimer: The writer owns Litecoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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