ZRO Technical Analysis: Double Bottom Formation
ZRO, subsequent to its downtrend in recent weeks, has formed a technically remarkable support zone by creating a double bottom formation below a critical support level. The area between $1.55–$1.60 seems to have a double bottom formation.
When the price tested this area, it rebounded up to the level of $1.72. If the price keeps rising to the support-resistance transformation line, this movement can be interpreted as a retest. If such a retest occurs, then the fall will be confirmed. For a positive momentum, the price needs to break out of this area with great volume.
In case of upward movements, the first strong resistance zone will be $2.00–$2.20. Above this level, the next target might be the $2.73 resistance if the price can break above this level and hold there. This resistance is of great importance as it is the previous peak and a strong sell zone. On the other hand, the double bottom pattern will be considered invalid if the price falls below the level of $1.60, and then sell pressure might increase. Here we can talk about the new support range $1.40–$1.35.
In summary, ZRO is technically in a potential reversal area with the double bottom formation. The price needs to close above $2.00 to make the formation work. Otherwise, the downtrend might continue if the support line gets broken.
These analyses, not offering any kind of investment advice, focus on support and resistance levels considered to offer trading opportunities in the short and medium term according to the market conditions. However, the user is responsible for their own actions and risk management. Moreover, it is highly recommended to use stop loss (SL) during the transactions.
