ZEN’s Reversal Zone – Perfect Time to Go Long?
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.
This laddering approach allows for better risk management and capital allocation.
Alternative Long Entry – Confirmation-Based Trade
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)
Key Takeaways:
New Free Indicator Release 🚀
I've just launched a FREE TradingView indicator – Multi Timeframe 8x MA Support & Resistance Zones. It helps visualise key support and resistance levels across different timeframes. Check it out and let me know your thoughts!
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
New Free Indicator Release 🚀
I've just launched a FREE TradingView indicator – Multi Timeframe 8x MA Support & Resistance Zones. It helps visualise key support and resistance levels across different timeframes. Check it out and let me know your thoughts!
Trade active
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 Trade closed manually
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.