Looking at the big move today in Ox (ZRX) on Coinbase, it is so tempting to FOMO into a long position. We think it is a positive sign that ZRX dipped and then managed to do another leg to the rally.
HOWEVER, we are going to stay disciplined and wait. There is substantial resistance at 0.25. You would only FOMO into a long if a 2D bar closed above 0.25. If ZRX took out 0.25, then you could expect a more significant up move to the 0.40 level. 0.40 is the level where the final leg of the down move started. Elliot Wave practitioners call that point the "previous 4th."
Many distinct trends experience corrections that lead to a retracement to the "previous 4th" before resuming. A break above the previous 4th means that the primary trend (in this case, the downtrend) is over. In this case, it would take a break above 0.40 to confirm the downtrend is over.
Bottom Line: ZRX has a decent chart picture, and it's tempting to be bullish. That said, buying resistance in altcoins has not worked at any point. So, don't FOMO into ZRX unless you see a sustained blast through 0.25.
HOWEVER, we are going to stay disciplined and wait. There is substantial resistance at 0.25. You would only FOMO into a long if a 2D bar closed above 0.25. If ZRX took out 0.25, then you could expect a more significant up move to the 0.40 level. 0.40 is the level where the final leg of the down move started. Elliot Wave practitioners call that point the "previous 4th."
Many distinct trends experience corrections that lead to a retracement to the "previous 4th" before resuming. A break above the previous 4th means that the primary trend (in this case, the downtrend) is over. In this case, it would take a break above 0.40 to confirm the downtrend is over.
Bottom Line: ZRX has a decent chart picture, and it's tempting to be bullish. That said, buying resistance in altcoins has not worked at any point. So, don't FOMO into ZRX unless you see a sustained blast through 0.25.