Cryptocurrency
by Seth Parker on September 26, 2018

0x Analysis – Nice bearish setup

Today, one of the biggest losers on the top of the list is 0x. Previously, we wrote about this instrument at the end of June, when the price was making new mid-term lows. Back in that day, we were bearish saying this:

„We just broke the lower line of the pennant (yellow lines), which triggers us a sell signal. Short positions will be denied, when the price will come back above the 0.7 USD, which for now is less likely to happen. Why 0.7 USD? Cause getting there will deny the pennant, simple is that. „

zrx chart

What happened after that? Sell signal got denied one day later. Well, sometimes you win and sometimes you learn. That was a good stop loss though. In the next few days the price went vastly higher. Well…if you bought this crypto you cannot complain for sure. The upswing that happened afterwards did not change the main trend though. The price remained in a bearish trend and created three continuation patterns: flag (red), triangle (blue) and flag (black). First two resulted with the drop. The last one is still active but according to the technical analysis, we are expecting a breakout to the downside.

Sentiment remains negative, especially, that we just bounced from the horizontal resistance marked with a yellow colour. As long as we stay below, the sell signal is on.

By Seth Parker

Seth is a professional trader with over 10 years of experience. He specializes in the technical analysis. His main focus is on the pure Price Action. In his trading, Seth used the trends, supports and resistances and technical formations. Always, the most important thing in his strategy is the money management. Seth reached a proficiency in trading and for the past three years is doing that for a living enjoying the sun and lovely beaches of the Spanish coast.

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