$ZIL BTC - Ready for the next push? 70%++ at 1:8 risk/reward
Good day traders,
If you’re like me, you love to stalk coins. Specially coins whose value gets blown out of proportion based on fundamentals and then corrects back to reality at a discounted price. The reason why I love this type of trade is that all the price levels are there for a perfectly technical trade. You know where the supports and resistances are and you also know how far the coin may go.
Based on my previous idea when ZIL was still in the stratosphere at 2150 (link in related idea below) it should be making its way down. How far down really depends on the wave count.
One could make a case that we’ve completed a 5 wave push and should be correcting down to the .618 retracement at roughly 1250. However, this would break the structure trend line (red) . In addition to that, we expect BTC to rally, at least for the next few days, so to expect the steam on ZIL to cool off that much could be over estimating.
So if we rely on a different count where we’re working on wave (iv) of this first cycle, we get a more reasonable estimate. When the B wave of (iv) finished, it put our RSI level at a position where it was being denied by a supporting RSI trend line which became a resistance trend line. We knew our RSI would correct fairly sharp, resulting in a relatively sharp correction in price which should print something close to a zig zag. If so, our target for C would be between .786 and 1 of A. This puts us right in line with a .382 retracement for wave (iii) which is also right at the support by the high on 5/5.
So here we have a relatively technical trade. A .382 retrace of the third wave with an ABC zig zag where C equals to A down to a support created by a previous high, all the while maintaining the structure trend line. If that's not a technical trade, I don't know what is.
From here we expect wave (v) to end somewhere between 2800 and 3200, a .618 and .786 extension of the length covered by 1 and 3. If this next move will be organic and technical, expect the trade duration to be about roughly 45 days. If they get listed on another 10 exchanges within 2 hours then who the hell knows where we may land. On the flip side, if we go below 1500 or the structure trend line, chances are high that we’ll see 1250, so set your stops tight and hop back in when the time is right.
Entry 1640 to 1550
Stop 1500
Target 3200, take 50% profit at 2850 and spread the rest up to 3200.
Risk / reward ratio: 1:8
Trade duration: roughly 45 days
Found this idea to be entertaining or absolute garbage? Feel free to let me know with a like or comment. As always, good luck and stay safe!
Kinashi-San
*For pure fun and joy, not financial advice. Not a recommendation to buy sell or hold.*
If you’re like me, you love to stalk coins. Specially coins whose value gets blown out of proportion based on fundamentals and then corrects back to reality at a discounted price. The reason why I love this type of trade is that all the price levels are there for a perfectly technical trade. You know where the supports and resistances are and you also know how far the coin may go.
Based on my previous idea when ZIL was still in the stratosphere at 2150 (link in related idea below) it should be making its way down. How far down really depends on the wave count.
One could make a case that we’ve completed a 5 wave push and should be correcting down to the .618 retracement at roughly 1250. However, this would break the structure trend line (red) . In addition to that, we expect BTC to rally, at least for the next few days, so to expect the steam on ZIL to cool off that much could be over estimating.
So if we rely on a different count where we’re working on wave (iv) of this first cycle, we get a more reasonable estimate. When the B wave of (iv) finished, it put our RSI level at a position where it was being denied by a supporting RSI trend line which became a resistance trend line. We knew our RSI would correct fairly sharp, resulting in a relatively sharp correction in price which should print something close to a zig zag. If so, our target for C would be between .786 and 1 of A. This puts us right in line with a .382 retracement for wave (iii) which is also right at the support by the high on 5/5.
So here we have a relatively technical trade. A .382 retrace of the third wave with an ABC zig zag where C equals to A down to a support created by a previous high, all the while maintaining the structure trend line. If that's not a technical trade, I don't know what is.
From here we expect wave (v) to end somewhere between 2800 and 3200, a .618 and .786 extension of the length covered by 1 and 3. If this next move will be organic and technical, expect the trade duration to be about roughly 45 days. If they get listed on another 10 exchanges within 2 hours then who the hell knows where we may land. On the flip side, if we go below 1500 or the structure trend line, chances are high that we’ll see 1250, so set your stops tight and hop back in when the time is right.
Entry 1640 to 1550
Stop 1500
Target 3200, take 50% profit at 2850 and spread the rest up to 3200.
Risk / reward ratio: 1:8
Trade duration: roughly 45 days
Found this idea to be entertaining or absolute garbage? Feel free to let me know with a like or comment. As always, good luck and stay safe!
Kinashi-San
*For pure fun and joy, not financial advice. Not a recommendation to buy sell or hold.*
Comment:
We touched our first buy zone which happens to be a confluence of the 400H MA and the .382 correction. I believe this should be it
Comment:
Zil is certainly playing along nicely. We are just waiting for some courage from BTC to reverse this move
Comment:
The ZIL train is about to depart. One more resistance at 1855 and we are home free ladies and gentlemen. Clear divergence in the 4H chart
Comment:
Welp, it goes without saying that your original gut feeling is usually right. Originally I had a feeling that we needed to see 1250 range before seeing any upward momentum. Impatience costed a stop loss, and we will learn from this on the next one. At the moment, we still expect ZIL to rebound either here at 1350 or test the .618 retracement at around 1250.
