ZECUSD - Technical Analysis October 25, 2017 - Current Price $210
![chart-1905225_640.png](https://steemitimages.com/DQmdSncX8TDdzpjF1taFGkLkj8dbGnNmQCvebfwZJEmCCpX/chart-1905225_640.png)
ZECUSD
With the fork over and done with, as we were looking at LTCUSD yesterday we are going to keep looking at the ALT coins for trading opportunities.
Daily
On the daily time frame we have been tracking ZEC since the hype pump that resulted in a dump. Ignoring that long wick, a double top is actually observable. Since the price has trended lower in low volatility. A bearish cross of moving averages has occurred with the 30 & 68ema falling below the 170dma. It is important to remember however, moving averages are delayed, a backward-looking indicator. Nevertheless, they are important and act as areas of support and resistance and represent supply zones.
A small trendline can be drawn from the previous low on ZEC to the current low and bulls would like to see this hold as it would be the start of a new series of higher lows - price progression.
Resistance was found at the 170dma 2 days ago as we see the price sold off after hitting that area of resistance. The stochastic RSI is trending down with the price as is the RSI while the MACD is holding quite a divergence but remains relatively flat and close to the zero line.
This consolidation is in low volume and this is typically bullish after a price sets a new high and pulls back.
4 hour
On the 4 hour time frame, we see the price had tested a convergence of the 68ema and 680dma at the pivot. This created a strong area of resistance and is where the price pulled back from. The price was unable to hold the 30ema and if we retest the trendline, bulls need to put up some defense.
The stochastic RSI on the 4 hour has pushed into an uptrend and the MACD is about to produce a bullish cross. With volume this could become a solid move and bulls should be looking for ZEC to reclaim the pivot on this time fame approximately $224.
During this slight downtrend, the RSI had reached oversold upon touching the trendline and is in part why it bounced, it was oversold.
1 hour
The 1 hour time frame is a little worse off and conflicts with our 4 hour. It is likely to see the stochastic RSI full cycle here as the price failed to reclaim any moving average support or pivot support. We are now observing a bearish cross of the 30ema below the 68ema, caution is warranted and it certainly appears that ZEC will retest the lower trendline support. If it fails we look just below to the S1 pivot, $196 to act as support.
The stochastic RSI has begun trending down, but a trendline can be drawn on the RSI showing progression, or strength of the holders (dip buyers).
We are watching the MACD for a bear cross - it is only detrimental to reversing the downtrend if it occurs on volume, otherwise the price will continue consolidating.
Bullish Above: $225
Bearish Below: $196 s1 pivot 1 hour
RISK TRADE: Scale into a long position up to trendline, approximately $205, take a loss if price loses S1 pivot.
Don't forget to use stop losses!!!
Previous Articles:
ZECUSD
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ETHUSD
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Follow at your own risk, Not a financial adviser, understand the risks associated with trading and investing. Manage your own Risk - in other words you could lose it all and it's your own fault.
I'm currently mining ZEC, after reading your info it seems I'm on the right track.
Thanks for the analysis. Very detailed.
Quite welcome. I like the zchain for mining generally also! Equihash algo weeeeeeeee
I bought back into ZEC this week. Was holding some that I bought around 195 average but I sold shortly after the big spike awhile back so I could buy bitcoin.. Can’t complain about 50%+ profit even if it wasn’t a large trade.
I watched it bleed back to the low 200’s and figured since I have the chance why not buy again around the same price?
I like your picks for analysis the last 2 days. I just took positions in LTC and ZEC this past week. I guess great minds think alike lol.
Haha sounds about right! Sometimes its important to look at the gems. LTC i always hesitate on because of the wide price spread, but I am liking it for the current setup - and the same could be said for ZEC - I will be looking at NEO XMR & DASH through the week and we will re-evaluate BTC (which may have an inverse H&S formed on the 15min and 30min charts, currently backtesting breakout)
Yep I’ve used some of my bitcoin to acquire my positions in ZEC and LTC recently as I think this current rally may have run its course for the time being. Time for consolidation.
I hope to get a small return on the LTC and zec positions and I’ll probably put he returns and principal back into BTC when the time is right.
I have mad respect for the planned strategy you laid out! Not having a game plan and contingencies is what gets people wrekt!
Thanks bro! In the past I've learned the hard way what happens when you don't have a plan and money is on the line...
Also, Looks like the ZEC trade is working out so far. Onward and upward! Have a great Friday my friend.
ZEC to the moon :)
Thanks for your post... Need to know the future of ZECUSD. Will it sustain or reverse. I myself also a Technical Analyst and I am happy with your post.... Keep updating..... @vindy
a little bit strange your support line ... :)
LOL your comment posted twice, it's a rough one and we are looking for a trend to form off of it as the recent low is a higher low compared to previous. Perfectly acceptable.
oh sorry for two time posted... i think is my browser VIVALDI not working well :) ..
i think is to soon for make trend line in your analisys because we need 3 points... it is what i mean
greetings
Yes and no - it depends on the time frame. If you went to the 15min time frame, a TL can be drawn. Sometimes its easy to predict where a trendline is starting, you don't always have to wait. To be fair, sometimes that just comes from experience.
Thanks for your comment.
ok if it's your system and it works for you .....perfect
I prefer not to predict anything and to follow what the price does
Fair enough - it's safer to do so, I have just seen this many times in stocks and crypto so i am very comfortable with the call -- very nature of technical analysis is to be somewhat predictive. Understanding ones own risk tolerance plays into that.
i love you tiger...but i I do not agree with you....
maybe it working any time .. but it is not safe ... righ now for technical analysis the principal trend is going down and it is not good business to anticipate the price....
i love you tiger...but i I do not agree with you....
maybe it working any time .. but it is not safe ... righ now for technical analysis the principal trend is going down and it is not good business to anticipate the price....
Upvoted. I'm going to resteem this now :)
Thanks Stanley!
hehe that was something really different :D
Hmmm ... very difficult I understand. not because your post is difficult to understand, but because I am still very new about this.
Hey can you check out my post, let me know if I can make it easier for people.
https://steemit.com/bitcoin/@cryptopsy/bitcoin-analysis-retrace-after-new-all-time-high
Hi, i'm new here.
I really like the style of your post so i follow you.
I just bough ZEC two days ago.
I hope it will get well...
great post. thanks @jerrybanfield