Zcash was moving in an upward channel since the sharp drop it made during the Black Thursday (March 12) and made a top of $49,18 on April 30. Since then, it is moving inside a descending path depicted here by a linear regression channel.
The last dop experienced by this digital asset happened last Sunday, in sync with Bitcoin's mini-crash. Since then, it continued weak near the bottom of the channel until May 12, when it made a substantial upsurge that brought the price back to the mid-line, which corresponds to the linear regression of the corrective structure. Then, on Thursday, it continued moving up and now is faced with the $43.5 resistance level, as the price action shifted the Bollinger band's direction to the upside.
Zcash outlook
All indications point to an underlying bullish bias, being the current leg just a consolidation- or corrective- structure. Now, we consider that a break above that level could drive buyers to enter a long position, with a target at the last high of $47.5, and with an invalidation level at $42.5, for a Reward-to-risk factor of 2.
The Setup
- Long Entry: 43.51
- Profit Target: 47.5
- Invalidation Level: 41.52
Reward/Risk: 2