- Trade update is well within profit, and ZB looks like it has lower to go in the short term.
- There is an ascending triangle forming on the daily chart.
- Possible scenario if the upward-sloping trend line does not hold as support.
Trade update from previous analysis
On May 2nd, we looked at a potential short trade in ZB. It has played out nicely, with the target very close to being hit. Take a look at the article here.
There is an ascending triangle forming on the daily chart that we can monitor as price moves toward the price target of 126’11, as shown on the chart below. There is a strong case that there will be enough support at 126’11 because of the upward trend line, which forms the diagonal sloping line of the ascending triangle. As long as price remains above the band at 125’17, bulls should be on the winning side.
We still need to wait for the trade to play out, however, which could take a few days. Then, a test of the upward trend line followed by a bounce back up to 131’03 to continue with the ascending triangle formation.