Disclaimer: I am not a professional trader and this is not financial advice, just an idea of what I see. Crypto has a high risk/high reward ratio and moves faster than traditional markets. Only bet what you can afford to lose.
I initially made a 24% gain on ZEN after entering on the 25.10.19. I saw ZEN hitting the daily 50 MA for a third time, along with a nice consolidation period. It kept holding the lower support (green rectangle) which gave it a relatively high probability of a move higher.
I wasn't too sure it would hold the middle resistance level as a lot of battling happened over the course of several weeks and sold @ 0.005150 satoshis. Shoulda, woulda, coulda: I should have kept my position open and move my stop higher, but better safe than sorry.
It ended up shooting through the middle resistance closing above it on the 7th of November. I waited for it to retest that new high, which it did on the 13th and opened a new position.
We are now clearly forming a very nice cup, no handle yet. One of two things is likely to happen:
1 : ZEN finishes its cup formation as drawn in magenta, which would get the price to hit the 200 daily MA. We'll likely see some battle take place in that area. Look for the handle to form before we shoot up.
2 : ZEN trades sideways as drawn in green in its uptrend channel, creating a larger cup.
How I would trade this:
Wait to see what ZEN does. If it shoots up through there big red rectangle, we're likely going to hit some resistance, finishing the cup formation. At this point, we should see a consolidation period in the 70000 to 73000 satoshis as a new support level will form and you could open a position.
If it gets back down, look if it holds the lower end of the trend line in the 58000 to 61000 satoshi and open a position there. Set your stops accordingly a tad below support.
I initially made a 24% gain on ZEN after entering on the 25.10.19. I saw ZEN hitting the daily 50 MA for a third time, along with a nice consolidation period. It kept holding the lower support (green rectangle) which gave it a relatively high probability of a move higher.
I wasn't too sure it would hold the middle resistance level as a lot of battling happened over the course of several weeks and sold @ 0.005150 satoshis. Shoulda, woulda, coulda: I should have kept my position open and move my stop higher, but better safe than sorry.
It ended up shooting through the middle resistance closing above it on the 7th of November. I waited for it to retest that new high, which it did on the 13th and opened a new position.
We are now clearly forming a very nice cup, no handle yet. One of two things is likely to happen:
1 : ZEN finishes its cup formation as drawn in magenta, which would get the price to hit the 200 daily MA. We'll likely see some battle take place in that area. Look for the handle to form before we shoot up.
2 : ZEN trades sideways as drawn in green in its uptrend channel, creating a larger cup.
How I would trade this:
Wait to see what ZEN does. If it shoots up through there big red rectangle, we're likely going to hit some resistance, finishing the cup formation. At this point, we should see a consolidation period in the 70000 to 73000 satoshis as a new support level will form and you could open a position.
If it gets back down, look if it holds the lower end of the trend line in the 58000 to 61000 satoshi and open a position there. Set your stops accordingly a tad below support.
Comment:
Looks like ZEN chose option ONE as we hit 79000 satoshis, effectively creating the cup.
Comment:
Aaand we hit the daily 200 MA. Let's see if the handle forms, nice opportunity if it does within the next few days!