The daily chart of Zcash shows us a good trading opportunity. After huge downward movement from 400.00 level, the market reached the bottom between 165.00 and 140.00 levels. Now it’s a good support zone and starting point for possible buying. A new swing low allows us to draw a new uptrend line which will be used for getting trading signals in future. Also this new swing low is higher than the previous one and it’s an additional confirmation for possible upward movement.
We have a strong bullish candle which broke the downtrend line. It gives us a buy signal. The high of this candle gives a level for placing pending orders. We could do it but 195.50 level is near with 200.00 strong resistance. It will be better to place pending orders above 200.00 level. If the market breaks this resistance, we’ll get an additional confirmation for further upward movement.
For placing stop orders we can choose between 2 variants. If you don’t want to risk much, you can place a tight stop order below the new swing low and 165.00 support level. But note that if the market can’t break 200.00 resistance with the 1st attempt, probably there will be a short term retracement to 165.00 support level and the main uptrend line. If we see such price movement, the long trades will be closed. The other variant for placing stop orders can be based on the previous swing low. It’s below 140.00 support level. This variant is more convenient for long term trading and allows pass the deep retracements. Profit target should be placed near 300.00 resistance level. The part of long positions can be left for the 2nd profit target at 400.00 resistance level. If you don’t use leverage, recommended trading volume should be upto 5% from your deposit.
Profit Targets: 298.50 and 398.50
The trading signal is based on Poloniex chart.