ZRX has been consolidating over the recent days within the $1-$1.2 channel. Market Contractions lead to market expansions. ZRX has had lots of buying over the past 24 Hrs on most exchanges which is being reflected on the current charts. Im expecting an increase in volatility as we are testing the upper trendline resistance on the daily, which has applied pressure to the downside. I am looking for a break through in the following hours/days which would lead to another meeting of the $1.35 region where we wicked to priorly. Once this region is fulfilled I will watch for a continuation to the upside to the $1.50 level. Not only Is this a resistance level on the daily but it also aligns with the 200% FIb target. At this level I will look to take some short term profits and look to buy back at a lower level.
Comment:
Here Is the 4H timeframe perspective. Included is Elliot wave which reflects the recent consolidation due to the current wave 4. A breakout and closure above the daily trendline will singal the start of wave 5 for me.
Comment:
After rejecting the upper trend line ZRX is now resting on the 4H EMA's. If the EMA's fail as support i will be expecting price action to meet the lower trend line in the wedge. As well with the 200 EMA(red) applying additional support below.