Z1P - Short Term Retracement

Oct 16, 2020

Z1P

Zip has formed a head and shoulder pattern, and has broken through it's short term upwards trend channel. From here, looking for the price to retrace to resistance at around the 5.54 mark. After a good test at this level, this area will be good for a long entry.

Let's see how it plays out.

Welcome your comments, thanks.

Oct 19, 2020

Note

A significant announcement has come out today, with Zip partnering with Apple and Google pay, and proposing a virtual credit card.

This changes the retail sentiment, and the price can now be expected to test the top of the channel. If it breaks the top of the channel with significant volume, the forecast will change from bearish to bullish, with a possible future retracement above this level offering a long opportunity.

A test of the channel without breaking could mean the price will retract back to the $7 region, with a test at this level providing a good long entry. I will most likely enter here if this happens.

A breakthough the $7 region could mean the price will reach the significant resistance area around the $5.54 mark.

An interesting week ahead.

Oct 19, 2020

Note

Market depth as at 9:43am indicates that retail (more buyers, less units) is looking to buy, while institutions are looking to sell (less sellers, more units) on the news.

Market depth - 2,470 buyers for 3,298,194 units : 1,537 sellers for 3,409,354 units.

Will see what happens today.

Oct 19, 2020

Note

10am market depth - 2,812 buyers for 3,803,377 units : 1,625 sellers for 3,779,213 units.

Looks like it will gap up.

Oct 19, 2020

Trade active

Gapped up on open, took a long position at $7.50. Target $7.90. Short term trade.

Oct 19, 2020

Note

Oct 20, 2020

Note

Tough day, entire market was down.

However, gaps are usually closed, and in this case, it was.

Will review tomorrow, any further drop past the recent pendant, I'll be looking to close the position. At that point, I'll most likely wait and see if it can reach the major support zone around $5.54. Given the news, I would expect this to be unlikely though.

Oct 20, 2020

Note

10am market depth - 2,546 buyers for 3,253,402 units : 1,833 sellers for 4,287,305 units.

Price looks like it will drop further today.

Oct 20, 2020

Note

2,627 buyers for 3,432,692 units: 1,890 sellers for 4,498,183 units

Oct 22, 2020

Note

Market gapped down yesterday, with WBC selling a large parcel of Zip. Expecting a bounce off the 0.61 Fib level, but if it breaks through, price can be expected to reach the support zone around $5.54.

History shows that gaps are closed, so I expect the price to return past that level in the not to distant future. This is the only technical reason I am continuing to hold long, but the fundaments of Zip are strong, further reinforcing the long position.

Unfortunately, I see short term pain..

Today will be interesting.

Oct 25, 2020

Note

After a hard week last week on Zip, this week's outlook is much better, with a high relative volume test near the fib level. Coupled with some good news this morning, I expect the price to return to the upper end of the channel in the next few days / weeks.

Still holding for now.

Oct 26, 2020

Note

Still holding (although it is painful!), as my long term view on this stock is positive.

Price has now broken through the next significant fib level, and is now expected to reach the major support zone over the coming days / weeks.

This zone presents a great buying opportunity! In hindsight, I jumped in too early, and should have gone with my original analysis, and avoided trying to scalp.

Oct 27, 2020

Note

Big down day all across the ASX yesterday. Let's see what today brings.

Oct 28, 2020

Note

Close to the support zone. I expect there to be an accumulation around this level, afterwhich the price will rise again, at least to the upper limit of the channel.

US election will dictate where the ASX is going however. I'll be looking to close this position before the election.

Oct 30, 2020

Trade closed manually

Position closed for a loss (I shouldn't have taken it). Going to look at Zip again after the US election.

Looks like a small retracement is going to happen, before dropping to the $4.80 mark. Below this, there is a significant gap that has not been filled, price could drop through this rather rapidly.