Zebec Network is forming a bullish retest at major support, holding key confluences including the VWAP and 0.618 Fibonacci. A sustained reaction here could open the door for higher price targets.
Summary
- Bullish Retest: Price testing support at VWAP, 0.618 Fibonacci, and point of control.
- Volume Setup: Declining volume suggests an imminent bullish influx.
- Upside Potential: Holding support opens rotation toward the value area high.
Zebec Network (ZBCN) has recently corrected from its swing high, pulling back into a region of strong technical confluence. The retracement has aligned with the VWAP, the 0.618 Fibonacci level, and the point of control of the entire trading range. From a market structure perspective, this setup suggests a potential higher low forming, which is generally seen as a bullish continuation pattern.
Key technical points
- Support Confluence: VWAP, 0.618 Fibonacci, and point of control align at the current retest zone.
- Volume Decline: Falling volume suggests an imminent bullish influx once accumulation completes.
- Upside Target: Reclaiming strength at support could drive a rotation back to the value area high.
The correction that unfolded after the recent swing high loss has driven price down to the point of control, a region recognized as a strong demand zone. Initial reactions here have shown signs of stabilization, hinting at a potential bottoming structure forming. Holding this region with daily closes would confirm demand and increase the probability of another bullish rotation.
At present, volume is tapering off, which often signals the market is preparing for a strong influx of new activity. If this influx manifests as bullish volume, it will give ZBCN the fuel needed to break higher. Traders should closely watch for this shift, as a sudden burst in bullish participation could confirm the retest and provide momentum toward the next resistance.
From a broader structural perspective, ZBCN remains bullish with consecutive higher highs and higher lows still intact. The current correction appears to be a natural reaction to the recent rally rather than a breakdown of trend. As long as the point of control holds firm, the bullish thesis remains valid and positions ZBCN for a potential move back toward the value area high and beyond.
What to expect in the coming price action
If ZBCN continues to defend this support level with strong daily closes and an influx of bullish volume, the probability of a rotation higher increases significantly. A reclaim of resistance at the value area high would likely trigger continuation toward new swing highs.
