ZECUSD closes higher for the 2nd day in a row
ZCash/US Dollar Index (ZECUSD) Technical Analysis Report for Jan 12, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ZECUSD finished Saturday at 56.56 edging higher $0.05 (0.09%). Trading up to $1.50 lower after the open, ZEC/USD managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ZECUSD as at Jan 12, 2019):
Saturday's trading range has been $2.47 (4.37%), that's far below the last trading month's daily average range of $5.19. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ZECUSD.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji.
Prices are trading close to the key technical resistance level at 58.51 (R1). After having been unable to move lower than 54.76 in the prior session, the market found buyers again around the same price level today at 55.02. The last time this happened on Wednesday, ZECUSD actually lost -9.58% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 53.18 where further sell stops could get activated. 2018's low at 48.57 is within reach and we might see further downside momentum should ZCash break out beyond.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Southern Doji" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for ZEC/USD. Out of 23 times, ZECUSD closed lower 60.87% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 65.22% with an average market move of -8.60%.
With five out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are BCHUSD gaining 3.0% and ETCUSD closing 1.55% higher. On the flipside the worst performers have been ETHUSD closing -0.72% lower and BTCUSD losing -0.05%. Looking at the other Minor Cryptocurrencies, the winners of the day have been HSRBTC surging 48.59% and LSKUSD closing 6.56% higher. The worst performers of the day have been TRXUSD tanking -7.9% and TRXBTC closing -6.57% lower. Read more