swilton

ZRXETH needs some support

Long
BINANCE:ZRXETH   0x / Ethereum
After getting slaughtered over the past couple of weeks, ZRXETH is back to the trendline to create a lower high. Yes, this lower high is not confirmed yet. Yes, the lower high could technically end up a tiny bit lower than where it is right now, but I'm calling it here. Long target is 0.0028. Due to the recent price structure, there is a very wide uncertainty in time -- between exactly 1 month from now and 1.5 years from now. The last time ZRXETH touched these levels, back in May, it saw the largest weekly green candle body of all time and rose 2.5x in a single week. Nothing is stopping from this type of price action from occurring again, but nothing is guaranteeing it either. Let's see what happens.
Comment: Edit: I just realized I kept mentioning "lower high" throughout the post when I meant to say "higher low"
Trade active: Now
Comment: The breakout and subsequent pullback to test prior resistance is a pinpoint perfect bullish continuation signal
Comment: ^ Nice! Just a guess this time. I think it will make a small pullback to create inverse H&S, then breakout to first major resistance, but this guess has implicit bullish bias.
Comment: ^ There's the pullback. The levels and timing are perfect so far.
Comment: Didn't quite make it to the resistance. I'd say the price is forming somewhat of a bearish wedge right now. Instead of predicting a movement arrow, I'll emphasize two key levels. The resistance level drawn previously is still valid. Watch out for key support and a shakeout zone below 0.00099 shown in cyan.
Comment: Buy
Comment: Good deal. Resistance is still valid. Old anchor zone is closed. New anchor zone is open in cyan. Let's dance.
Comment: Perfect. Rebuy at the active anchor points (untouched cyan lines) but keep an eye on the white resistance zone in case it breaks it and surges up. If it closes above resistance, buy anywhere or wait for a retest and conversion from prior resistance into future support.
Comment: Looking strong, but bulls need to stand their ground and show absolutely no weakness.
Comment: Zooming out a bit, we tested prior resistance at 0.00107 and converted into support. Currently the price is trending up and is regularly testing the 1-hour price moving average as support (blue-green line). It will continue to trend up until it doesn't, and continue to test the 1hr MA until it doesn't. Maybe double top, and a bit of bearish divergence on MFI. Likely to drop down and test support, but after this many touches, it's looking a bit too obvious and I expect it to deviate soon -- otherwise, it would become too predictable. Let's see what happens.
Comment: ^ I don't know why I said 1 hour MA, I meant 60 hour MA. Losing my mind here. Turns out that support line was becoming too obvious and it did do something different. Now the million dollar question, is it a stop hunt shakeout or real weakness? If it's a shakeout, it would be an extremely bullish signal. The latter, obviously not so good. Everything depends on the recovery. Currently trying to break that critical 0.00107 line again and getting rejected. If it gets rejected at prior support, it would be a pretty bad sign for the short term, but open up the opportunity to accumulate at the anchor zone. You always want to be in a position where you're happy either way, up or down. That's how you win this game, you trap the market instead of letting the market trap you.
Comment: Tons of action. It was a bullish shakeout! Broke out of uptrend resistance and created a small bull flag trapped between the price target and prior uptrend resistance. Broke out upward on low volume (not great, but okay). Currently we have some bearish divergences, and low volume, so technically it looks like it could fizzle out, but sometimes these parabolic impulse moves become technically irrational and just blow through everything. Technically, I will have to guess it will relax down to horizontal support, but I also highlighted high targets in case the market becomes irrationally bullish.

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