Z1P.ASX has been well supported at $6.30 for the past week, even during that short term sell off after Presidential debate, buyers came back through holding price within this range.

Z1P

Many signals on the daily and 1 hour are now suggesting further support to the upside, and a recovering Nasdaq’s 8% rise since the 24th of September suggests the tech/payment sector could well be back in force. Z1P had extremely bullish buying momentum advancing through the range.Z1P

 

Key Points:

  • Daily – Price above 50 EMA
  • Daily – Price Above 200 EMA
  • Daily – Range break out with increased volume
  • Daily – Gap void between $7.50 – $8.00
  • Daily – $8.00 Clusters with 50% Fibonacci Retracement
  • 1 – Hour – Above 50 and 200 EMA
  • 1 – Hour – Breaks $6.50 range
  • 1 – Hour – Increased volume during long bull bar

Key Levels:

Support – 200 EMA, 50 EMA, $6.50

Resistance – $7.00, $7.50, $8.00

Entry Zone:

Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.

Optimal Entry – $6.50

Supporting Entry – $6.70

Candle Reversals for entry

  • Bullish Hammer
  • Bullish Engulfing
  • Bullish PiercingCandlestick

 

The Risk:

As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios.

If you are not comfortable with defined exit levels, experiment with Moving Averages to help set solid exit rules to protect your capital.

IF: Price breaks below $6.20 level and violates 50 EMA – this would suggest the structure is not in our favour and would be wise to reduce exposure or close the trade until a solid signal gives us reasons to re-enter.

Reward / Reward Targets:

Optimal Entry $6.50 – Target 1 $7.50 = 3x Reward to Risk

Optimal Entry $6.50 – Target 2 $8.00 = 4.7x Reward to Risk

Supporting Entry $6.70 – Target 1 $7.50 = 1.5x Reward to Risk

Supporting Entry $6.70 – Target 2 $8.00 = 2.5x Reward to Risk