(+) Time to watch Zcash
I must confess to being a bit confused by the fact there seems to be more than one coin with the moniker “Z”. In the event that I am confusing my terminology, please be crystal clear that I am referring to the asset that trades as ZECUSD on Kraken. Current price ~ $59
In any event, I wanted to do an article on this asset today, because I believe that the coin is showing signs of life. I wanted to get this out there before the trade becomes public knowledge.
Litecoin has been my focus for the past two weeks, but it seems that (for now at least) that trade is spent. But I see that ZECUSD has, for the first time, closed above a 2nd arc on my 3hour chart. That is not, technically, a BUY signal. Anything can happen while pricetime is within an arc pair. (My best guess is that while traversing an arc pair there are competing forces acting on price. The lower arc providing support and the upper providing resistance). Still, the fact that we have a close above the 1st arc of the pair warrants our attention. This arc has been impenetrable ever since it stopped the big advance in mid-March.
As you can see, pricetime has been respecting this setup for quite some time. The blue arrows highlight just a few of the places where forecasted resistance and support were actually found. Our present interest is focused on the fact that we finally have a close above the bold green arc.
As indicated above, cautious traders will wait until a close above the 2nd arc of the pair before going long. However more aggressive traders might consider buying here with a tighter stop. The red arrow shows the next arc at ~ $69, and resistance at the top of the square at ~ $90.
Lets employ the Fibonacci Vortex (developed by Erik Beann).
This tool shows us resistance in almost the exact same places as the Gann setup. The blue arc that stopped the advance at $75 is now cresting at ~ $86, and the pink arc is cresting at ~ $69.
There is another reason to believe that we have hit a reversal point. If we center the vortex on the February low, and size the vortex to accommodate the rise immediately preceding it, we get a line of support that seems to be well-respected by pricetime. The recent low bounced off it nicely.
Time will tell, but I suspect this is a coin to watch in the coming week.
Remember: The author is a trader who is subject to all manner of error in judgement. Do your own research, and be prepared to take full responsibility for your own trades.
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