ZCL has had an amazing run recently, credit to the hardfork coming.The incredibly interesting question (because the fork is coming soon) is... have the bulls run out of steam?
It is very hard in this situation to ignore the fundamentals of this coin given the situation, but let's try and leave that out for a minute and see what the chart is telling us.
Disclaimer: This is speculation and hypothetical and should not be used as trade advice. Factor in that I joined TradingView a couple days ago and only have one follower. Anyways, this ones for you @eoscrypto, my one and only (literally).
Breakdown:
1.) ZCL is currently trading in a small downwards channel (i.e. correction), but that down trend lays within the much larger uptrend. General rule of thumb is that the larger trends/patterns take precedent to to the smaller trends and patterns that take place within them.
2.) Resistance - ZCL is now trading below the 20 and 50 day ema's which could act as resistance levels. Another strong point of resistance is the top of the downtrend channel it is currently trading in. There are corresponding fib levels which act as support and resistance levels here (as well as targets) but I removed these from the chart because it was cluttered.
3.) Support - - ZCL is trading above the 200 day EMA and the bottom of the strong upwards trend line. They also are converging as we speak which strengthens the support. Within the last few hours, ZCL moved down to touch the bottom trend line and the 200 day EMA at almost the exact same time, and instantly changed directions.
4.) Elliot Wave Count - Elliot Waves are open for interpretation. My count could very well be wrong, but if you look at the numbers corresponding with the waves (green lines), you'll see that I have ZCL just completing a full wave cycle, and correction being complete. This would be bullish for a continuation of the uptrend and should help push ZCL through the top of the small down trend channel for further gains.
Conclusion: We all know ZCL is going down soon because of the fork, but when will that happen and what's the move here? Well, since I don't give trade advice, let's take a look at a hypothetical.
If I already made some profits off this run and were still holding on to some ZCL to see what happens (hypothetical of course), what would I do? Well, there's two trends at play here, and whichever breaks first will determine ZCL's near future and would determine my move. If there is a close above the top of the small down trend channel, we're going up further. I don't know how far so I would trail my stop loss and ride this up as far as I could.
Likewise, if there is a close (4 hr bars) below the larger uptrend line, I'm out. Easiest way to do this would be to set a stop loss a little below the trend line, so if it breaks it, you avoid the risk of going down with the ship. If I was looking to buy more ZCL I would not do so until a continuation of the trend is confirmed, meaning a 4hr bar closes above the top of the small downtrend line.
What should you do? Well, don't listen to me, do your own research.
Please, like, comment and share so my follower can have a friend. Thanks for reading!
It is very hard in this situation to ignore the fundamentals of this coin given the situation, but let's try and leave that out for a minute and see what the chart is telling us.
Disclaimer: This is speculation and hypothetical and should not be used as trade advice. Factor in that I joined TradingView a couple days ago and only have one follower. Anyways, this ones for you @eoscrypto, my one and only (literally).
Breakdown:
1.) ZCL is currently trading in a small downwards channel (i.e. correction), but that down trend lays within the much larger uptrend. General rule of thumb is that the larger trends/patterns take precedent to to the smaller trends and patterns that take place within them.
2.) Resistance - ZCL is now trading below the 20 and 50 day ema's which could act as resistance levels. Another strong point of resistance is the top of the downtrend channel it is currently trading in. There are corresponding fib levels which act as support and resistance levels here (as well as targets) but I removed these from the chart because it was cluttered.
3.) Support - - ZCL is trading above the 200 day EMA and the bottom of the strong upwards trend line. They also are converging as we speak which strengthens the support. Within the last few hours, ZCL moved down to touch the bottom trend line and the 200 day EMA at almost the exact same time, and instantly changed directions.
4.) Elliot Wave Count - Elliot Waves are open for interpretation. My count could very well be wrong, but if you look at the numbers corresponding with the waves (green lines), you'll see that I have ZCL just completing a full wave cycle, and correction being complete. This would be bullish for a continuation of the uptrend and should help push ZCL through the top of the small down trend channel for further gains.
Conclusion: We all know ZCL is going down soon because of the fork, but when will that happen and what's the move here? Well, since I don't give trade advice, let's take a look at a hypothetical.
If I already made some profits off this run and were still holding on to some ZCL to see what happens (hypothetical of course), what would I do? Well, there's two trends at play here, and whichever breaks first will determine ZCL's near future and would determine my move. If there is a close above the top of the small down trend channel, we're going up further. I don't know how far so I would trail my stop loss and ride this up as far as I could.
Likewise, if there is a close (4 hr bars) below the larger uptrend line, I'm out. Easiest way to do this would be to set a stop loss a little below the trend line, so if it breaks it, you avoid the risk of going down with the ship. If I was looking to buy more ZCL I would not do so until a continuation of the trend is confirmed, meaning a 4hr bar closes above the top of the small downtrend line.
What should you do? Well, don't listen to me, do your own research.
Please, like, comment and share so my follower can have a friend. Thanks for reading!
Comment:
Hypothetical buyers beware* (not be where)
Order cancelled:
Stop loss triggered. Shows the importance of booking some profits on the way up!
This shows two things - There is some strength to that support for it to pull the price back in like that, but also that the bears are fighting hard right now!
Hypothetical buyers be where! Hypothetical Hodlers, stop losses!