ZEN’s Reversal Zone – Perfect Time to Go Long?

6 févr.

ZEN has seen a sharp 78.65% decline from its $46.28 high, dropping over the past 40 days. With six consecutive red daily candles, we’re at a critical point to determine whether a bullish reversal is near or if further downside is ahead. Let's analyse the key support and resistance zones and establish high-probability trade setups.

Support Levels & Confluences

1️⃣ Psychological Support – $10: Price bounced off $10, aligning with the 0.886 Fib retracement.
2️⃣ Trend-Based Fib Extension 0.786 – $11.33: Indicates potential correction completion
3️⃣ Yearly Open from 2021 – $11.61: Acts as a historical support level
4️⃣ Weekly Support at $11.48 (0.618 Fib Retracement): Aligns with the weekly order block ($12.13 - $11.45)
5️⃣ Monthly 21 SMA – $10.86: Aligns with the 0.786 Fib

Long Trade Setups – Laddering Strategy

Long positions can be laddered from $11.48 (0.618 Fib) down to $10.82 (0.786 Fib) for a better cost basis.

• Long Entry #1: $11.48 (0.618 Fib Retracement)
  
• Long Entry #2: $11.00 (Mid-range level between fibs)
  
• Long Entry #3: $10.82 (0.786 Fib Retracement)
  
• Stop Loss: Below $10.60
  
• Take Profit: $14 - $15
  
• R:R: 13:1 (for 0.786 Fib entry)
  

This laddering approach allows for better risk management and capital allocation.

Alternative Long Entry – Confirmation-Based Trade

• Entry: If price reclaims $12.11 (Daily Open & Weekly Level) and retests it as support
  
• Stop Loss: Below $11.48
  
• Target: $14 - $15
  
• R:R: 3:1
  

Resistance Levels & Short Setup

1️⃣ Weekly Open - $14.20
2️⃣ Monthly Level - $14.85
3️⃣ Weekly Level - $15.12
4️⃣ Key Resistance - $15
5️⃣ 0.5 Fib Retracement from Downward Wave - $15.25
6️⃣ Weekly 21 SMA - $14.92

Short Setup (If Price Reaches Resistance & Shows Weakness)

• Entry: Between $14.85 - $15.25
  
• Stop Loss: Above $15.50
  
• Take Profit: $14.2 - wOpen
  

Key Takeaways:

• Ladder long entries from $11.48 - $10.82 to maximise R:R
  
• Alternative long trade if price confirms $12.11 as support
  
• Strong resistance at $14.85 - $15.25, ideal for profit-taking or a short trade setup
  
• Multiple confluences (Fib levels, moving averages, order blocks) confirm these setups
  

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7 févr.

Transaction en cours

Nice bounce off that 0.786 Fib level! Watching the order flow closely now to see if the momentum holds, will add to the position

7 févr.

Trade fermée manuellement