ZECUSD closes within prior day's range after lackluster session
ZCash/US Dollar Index (ZECUSD) Technical Analysis Report for May 23, 2020 | by Techniquant Editorial Team
ZECUSD ended Saturday at 47.08 losing $0.65 (-1.36%) on low volume. Trading $0.69 higher after the open, the cryptocurrency was unable to hold its gains as the bears took control ending the day below 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 May 23, 2020):
Saturday's trading range has been $1.67 (3.5%), that's far below the last trading month's daily average range of $2.98. 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.
After moving higher in the previous session, ZCash closed lower but above the prior day's open today, forming a bearish Harami Candle. The last time this candlestick pattern showed up on May 9th, ZECUSD lost -9.00% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern.
After trading down to 46.75 earlier during the day, the market bounced off the key technical support level at 46.95 (S1). The failure to close below the support could increase that levels significance as support going forward. ZEC/USD ran into sellers again today around 48.42 for the third trading day in a row after having found sellers at 48.30 in the previous session and at 48.63 two days ago.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling might speed up should prices move below the nearby swing low at 44.59 where further sell stops could get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Harami Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for ZEC/USD. Out of 19 times, ZECUSD closed higher 57.89% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 68.42% with an average market move of 4.79%.
With five out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are EOSUSD losing -1.16% and LTCUSD closing -0.81% lower. On the flipside the best performers have been ETCUSD closing 1.55% higher and BTCUSD gaining 0.23%. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 10.84% and XVGUSD closing 5.05% higher. The worst performers of the day have been HSRBTC tanking -9.88% and ARDRBTC closing -9.27% lower. Read more