ZECUSD closes above its opening price after recovering from early selling pressure
ZCash/US Dollar Index (ZECUSD) Technical Analysis Report for Oct 17, 2020 | by Techniquant Editorial Team
ZECUSD finished Saturday at 63.12 gaining $0.61 (0.98%). Trading up to $1.24 lower after the open, ZEC 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 missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ZECUSD as at Oct 17, 2020):
Saturday's trading range has been $2.24 (3.58%), that's far below the last trading month's daily average range of $4.83. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher 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. After moving lower in the prior session, ZEC/USD managed to close higher but below the previous day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the Hammer.
ZCash managed to close back above the 50-day moving average at 63.02. When this moving average was crossed above the last time on October 10th, ZECUSD gained 8.76% on the following trading day. Prices are trading close to the key technical resistance level at 66.29 (R1). After having been unable to move lower than 61.07 in the prior session, the market found buyers again around the same price level today at 61.27.
The cryptocurrency shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Selling might speed up should prices move below the close-by swing low at 61.07 where further sell stops could get triggered. As prices are trading close to October's low at 58.71, downside momentum might accelerate should ZECUSD mark new lows for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hammer" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for ZEC/USD. Out of 22 times, ZECUSD closed lower 68.18% 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 72.73% with an average market move of -9.81%.
With four out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 0.81% and BTCUSD closing 0.37% higher. On the flipside the worst performers have been BCHUSD closing -2.05% lower and LTCUSD losing -1.43%. Looking at the other Minor Cryptocurrencies, the winners of the day have been WAVESUSD surging 8.14% and WAVESBTC closing 7.59% higher. The worst performers of the day have been BCNUSD tanking -10.94% and BCHBTC closing -2.26% lower. Read more