Formation of an up channel:
Now on the the price line of ZEC has formed an . And the price action is moving very well within this channel by hitting the support and the resistance of the channel. But this time I am expecting that the priceline will breakdown the support of this channel. There are different reasons behind that let's talk about them.
ZEC is completing the final leg of pattern:
On the same the price line is forming a . Sofa all the legs are driven perfectly as required for the pattern, therefore I am expecting that the final leg will be formed as per requirement of the this pattern. At this time the price action is at the support of the channel. But in order to complete the final leg the priceline needs to move more down from $37 up to $35. Its mean that for the completion of this it is mandatory for the support of the channel to be broken down. And after completion of the leg from that level as Fibonacci sequence of the the price action of Zcash is supposed to move up.
Different indicators and oscillators are turned bearish:
Now if we see the different indicators and oscillators on the like the ( ) , moving average convergence divergence ( ) and then all indicators are turning . is turned the has turned strong and the momentum is turned weak and soon it will be turned strong . These signals by the indicators will also help the price action to complete the final leg of pattern. But again in order to complete the final leg of BAT the priceline will breakdown the support of the channel.
The simple moving averages:
If we see the simple moving averages on the with the time period of 25, 50, 100 and 200. Then it can be easily observed that after the strong downside move of Zcash price action in the month of March the price action again turned and broke out the 25, 50 and 200 simple moving averages. But after breaking out all these simple moving averages now the price action is not able to break out the 100 resistance even after several attempts. If we dig it more deeper then we can easily see that the price action has also formed a at that 100 resistance. this formation can produce more rally to the downside. That can break down the 200 as well. And we can have a bounce back from the 50 because the simple 50 is at the same level where we have the potential reversal zone of pattern.
The exponential moving averages:
Now I woud like to discuss about the exponential moving averages with the time period of 10 in 21. Then it can be easily observed that since the priceline has crossed up these two exponential moving averages the Zcash is using these moving average as a support, moreover the cross between these exponential moving averages in the month of April produced more upward rally. This time the priceline has broke down the 10 and hitting the exponential moving 21. And the 10 is moving down and likely to form a death cross with the 21 soon. If the price action will break down the 21 then we will witness the more downside move.
Support and resistance levels:
During the downside move in the month of March the price action has hit the strong support of $26. And moved up. After that it has broke out the next at $35. And after re-testing this as a support the priceline started another upward move and tried to break out the next at $49. This is the same level where we have the 100 . And we can observe that at this the price line is forming the same as it has formed on the 100 resistance. Therefore we can expect that the priceline may re-test the previous resistance at $35 as support. This is the same level where we have the potential reversal zone of pattern.
Formation of pattern:
If we switch to long term weekly chart then it can be easily seen that the priceline of ZEC is moving within a pattern. And within this pattern whenever the price action has reachedthe support it has started rally to hit the resistance. But this time after hitting the support I am not expecting that it will reach the resistance. From here it may move down for the correction rally. This is very positive sign that the is above the therefore it will be easy for the price line to breakout the resistance of the . And if we place the on the complete price action moving within this pattern then we can see that we have a very weak interest of the traders below $35. Therefore if the price line will move down from this level then it will be moved up. Because as per the traders interest is very low below $35 level and in the past history of the this pattern we can easily witness that whenever the price line is moving down below this level then it moves upto the resistance very easily.
The indicators on weekly chart are not synchronized:
Here I am using the combination of three indicators to observe the and momentum. The , and momentum indicators. If we take a closer look at the chat then it can be easily observed that whenever the price action of Zcash is hitting at the support of the pattern and the support as well. After that the gives bull cross and turns and the momentum also turns then the price line of ZEC starts a powerful rally that leads the price action to reach the . But this time this the signals of these indicators are not synchronized. After hitting the support the has given the bull cross the is very strong but the momentum is continuously ignoring the signals by the and and turning more and more . Therefore we can expect that soon the will be turned and the will also give the bear cross and the priceline may re-test the previous of $35. Here I am not execting as that much move that the price line may hit the support of the .
A very big pattern on monthly chart:
Now finally I would like to talk about that very big that has been formed by the priceline of Zcash on the monthly chart same is like the Bitcoin has formed. But this is more powerful pattern than Bitcoin . Because in recent move the priceline of Bitcoin has reached the sell zone as I have defined on the Bitcoin chart on the other hand if we watch the that is formed by the Zcash then it is still moving in the potential reversal or buying zone even after the strong move of more than 170%. So its mean that we can expect more powerful move on the long-term that can lead the price line of ZEC to reach the of A toD leg of this Gartey pattern, that I have defined as a sell zone on the chart. It is not mandatory that the priceline will be dropped down after hitting the sell zone. If the Zcash will be able to break out this sell zone area then it can lead the price action to hit the $800 that is previous highest price.
On the short term I am expecting a downside rally as the are appeared and different indicators have given sell signals. But on the long-term Zcash is as it has formed big .
Note: This idea is education purpose only and not intended to be investment advise, please seek a duly licensed professional and do you own research before any investment.