ZROUSDT - Struggling to break the High (SHORT)
Updated
ZRO recently surged to a swing high and is currently battling at that price area. Let's dive into the latest price action and explore a potential short trade setup with a great risk-to-reward
Recent Price Action: Surge to Swing High
Short Trade Setup: Targeting the Fib 0.382 Level
1.) Short Trade Setup:
Support and Confluence:
Key Levels and Indicators
Strategy: Executing the Short Trade
Our short trade setup targeting the Fib 0.382 level around $3.80, which aligns with the Anchored VWAP and an old Order Block, offers a strategic opportunity with a great R:R.
What are your thoughts on this analysis?
Recent Price Action: Surge to Swing High
- Swing High: ZRO surged to the recent swing high, encountering resistance at this key price area.
- Battle at Swing High: The price is currently struggling to break above this resistance, suggesting a potential retracement.
Short Trade Setup: Targeting the Fib 0.382 Level
1.) Short Trade Setup:
- Entry Point: Consider entering a short trade from the previous swing high.
- Target Profit (TP): The TP for this short trade is the Fibonacci 0.382 level of the entire wave structure, around $3.80.
Support and Confluence:
- Old Order Block: The Fib 0.382 level also coincides with an old Order Block, providing an additional layer of support.
- Anchored VWAP: Taking the Anchored VWAP from the low, we see clear confluence at the exact 0.382 Fib level, reinforcing this area as a strong support zone.
Key Levels and Indicators
- Resistance at Swing High: Watch for continued resistance at the swing high, which supports the short trade setup.
- Fib 0.382 Level: Monitor the price action as it approaches the $3.80 level, where we expect to see support from the Fib level and the old Order Block.
- Volume Trends: Decreasing volume near the swing high can further confirm the potential for a retracement.
Strategy: Executing the Short Trade
- Executing the Short: Enter the short trade at the swing high or at Fibonacci 0.618 (around $4.3), targeting the Fib 0.382 level around $3.80.
- Monitoring Price Action: Keep an eye on volume and price action for any signs of bullish reversal as the price approaches the support level.
Our short trade setup targeting the Fib 0.382 level around $3.80, which aligns with the Anchored VWAP and an old Order Block, offers a strategic opportunity with a great R:R.
What are your thoughts on this analysis?
Trade closed: target reached
Short trade take profit target reached, perfectly played out.
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