XZC technical analysis

XZC seen from the temporality of 1W we can see how the candle structure has formed a long descending wedge indicated in the chart above by the dark blue diagonals, we see how the price found support in the area of weekly demand located at 0.0004946 where the sail formed a hammer followed by a doji as a reversal signal, the last two sails have responded well to the signal, with the current sail struggling to close above the key level located at 0.0006102 indicated in the graph by the horizontal black color, if the candle manages to close above that level, it is very possible that we have a continuation of the current bullish momentum towards our first target which is the area of supply located at 0.0007786, we could even reach the second target located within the price range of 0.0008526 – 0.0009557, indicated on the chart by a light blue rectangle, if the price fails to close above the resistance of the key level, the odds of a correction move towards the weekly demand zone are very high.

XZC seen from the temporality of 1D we can observe more closely how the price is trying to get the level located at 0.0006102, the bullish candlestick series has held up very well after getting the break of the small pennant marked on the green triangle chart, the RSI indicator shows bullish divergence since the weekly candlestick found support, which supported the current move, However, it is still too early to clearly determine what will be the next price movement, in 1D the price has to close above the horizontal and give us a confirmation test to continue bullish, otherwise, the price could fall in search of the weekly demand zone.

In conclusion, the price at 1W, for now, continues to show us a very favorable price action to continue in search of higher profits, however, we can not be confident, we have to confirm the closing above 0.0006102 and confirmation, the bid zone is also an important level to take into account since the price could find much resistance at that point and go back; therefore, I recommend to follow very closely the price action at 1D and always use stop loss in all our operations to avoid losing capital by invalidations in the movement.

As I always say, you have to be aware of the movement, invalidations can occur, there is no 100% reliable analysis, take your own precautions when trading.

You can follow me on Twitter: https://twitter.com/armijogarcia

About the author: luis garcia
Technical Market Analyst Crypto trader

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