$ZK Trade setup and explanation on 4h and 1 day
Chart 1: 4H Chart
1. Price Trend:
The price experienced a downtrend, peaking around 0.136602 and later dropping to 0.09220 before making a slight recovery.
The current price is 0.10866, a 3.75% drop in the last 24 hours.
2. Indicators:
RSI (6): 30.56 (Oversold region): This suggests a potential price reversal soon. If it drops below 30, a bounce might occur.
MACD: The MACD line has crossed below the signal line, indicating a bearish momentum. However, the histogram shows a potential loss in bearish momentum, suggesting a possible reversal.
3. Support and Resistance:
Support: The nearest support zone is around 0.09220.
Resistance: Immediate resistance at 0.12214.
4. Patterns:
No clear bullish or bearish patterns, but the price might be forming a double bottom near the 0.09220 region, which could trigger a bullish reversal if confirmed.
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Chart 2: 1D Chart
1. Price Trend:
The price peaked around 0.26390 and has been declining steadily to a low of 0.08016.
The price is currently consolidating around 0.10870 after a minor recovery from its low point.
2. Indicators:
RSI (6): 46.09: This indicates neutral conditions, but it's leaning slightly bearish.
MACD: The MACD line is slightly below the signal line, with a very small bearish divergence. However, the histogram is losing strength, indicating the downtrend may be weakening.
3. Support and Resistance:
Support: Strong support at 0.08016.
Resistance: Immediate resistance at 0.13834.
4. Patterns:
A falling wedge pattern could be emerging, which is typically a bullish reversal pattern.
The price seems to be consolidating, which could lead to a breakout in either direction.
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Entry, Stop Loss, and Take Profit:
Entry:
Conservative Entry: Enter at the next retest of the support at 0.09220 or a confirmed breakout above 0.12214.
Aggressive Entry: Around 0.10866, given the potential double bottom and weakening bearish momentum.
Stop Loss:
Set below the support levels:
For the conservative entry: 0.08900
For the aggressive entry: 0.10500
Take Profit:
First Target (Short-Term): 0.12214 (previous resistance).
Second Target (Medium-Term): 0.13834 (next significant resistance).
Final Target (Long-Term): 0.20572 (upper resistance).
Keep an eye on volume and any new market data
that could influence the price action. Make sure to adjust the stop-loss levels as the trade progresses.