Trade Recommendation: Zcash
Our May 5, 2019 trade recommendation for Zcash (ZEC/USD) hit both targets. On May 30th, the market climbed as high as $98.537. Those who stuck to the trading plan grew their investments by more than 77% in less than a month.
Zcash has been correcting ever since it posted recent highs of $98.537. However, the correction may not last long. The cryptocurrency looks mighty bullish and it appears ready to make its next move up.
Technical analysis shows that ZEC/USD is painting a massive inverse head-and-shoulders pattern on the daily chart. This pattern has been in construction since November 2018. Thus, the smart money has already invested for seven months while building this base. That length of time spent in accumulation makes us believe that Zcash will blast off after it breaks out of the pattern.
Fortunately, technical indicators favor the bulls. The market is not in the overbought territory in both the weekly and daily timeframes. This gives bulls the room to take out resistance of $87 without overheating. In addition, volume has been in a steady decline since May 30th. This tells us that sellers are starting to lose interest in dumping positions at current levels.
The strategy is to buy on the breakout and retest of $87 as support. If bulls can convert the $87 resistance level into support, they will likely attract the momentum to reach our targets of $107 and $120.
The process may take a month.
Daily Chart of Zcash/US Dollar on Bittrex
Summary of Strategy
Buy: Breakout and retest of 87 as support.
Targets: $107 and $120.
Stop: $83 after the breakout.
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.
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