Trade Recommendation: aelf
Aelf (ELF/BTC) is a market that looked ready to explode. It has been range trading between 0.000028 to 0.000038 for almost three months. This price action told us two things.
The first one was that the market has already bottomed out. Aelf touched the bottom end of the range four times during this period but it was never breached. This was an indication that 0.000028 support is being defended. The second one was that the smart money accumulated positions at the lows. Aelf now has a solid base that it can use to trend higher. Under these conditions, we are confident to long the market.
Technical analysis shows that ELF/BTC was positioning for a range breakout earlier today. We started having this view after aelf climbed as high as 0.00003979 on February 16, 2019. The rally was driven by extremely heavy volume. The last time the market registered that kind of volume was in April 2018. This tells us that aelf is in the latter stages of base building.
While aelf failed to take out our range high of 0.000038 on February 16, bulls were able flip our range midpoint of 0.000033 into support. This enabled the market to establish a bullish higher low setup. The bulls were trying to use this support to take out the range high of 0.000038 today. However, given that this coin failed to breakout 0.000038 today and is trending lower now, we’ll range trade it.
The strategy is to buy as close to 0.000033 as possible. As long as aelf trades above this level, bulls will likely gather the momentum to climb to the range high of 0.000038. If bulls finally manage to take out this resistance, the next target is 0.00005.
The process may take less than a month.
Daily Chart of aelf/Bitcoin on Binance
As of this writing, the aelf/Bitcoin pair is trading at 0.00003447 on Binance.
Summary of Strategy
Buy: As close to 0.000033 as possible.
Targets: 0.000038 and 0.00005.
Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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