Trade Recommendation: Ark/Ethereum

The Ark/Ethereum pair (ARK/ETH) started gathering bullish steam on December 16, 2017 when it took out 0.007 resistance. The breakout attracted momentum traders who pushed the price to as high as 0.0127 on December 21. In less than a week, the market rose by over 80%. Those who bought the breakout saw it as an opportunity to take profits.

As the market succumbed to heavy selling, it went as low as 0.0075 on December 22. Bottom pickers bought positions as they noticed that a higher low in place. While the market rallied, it generated a lower high of 0.01148 on December 26. ARK/ETH turned bearish, and it created a series of lower highs and lower lows until recent events.

Technical analysis show that Ark/Ethereum may have bottomed out on February 28, 2018 when it dropped to 0.003933. On the same day, bulls stepped in to preserve 0.0042 support. Three days later, on March 3, the market jumped in both price and volume. This could indicate that the market still respects 0.0042 support.   

The strategy is to buy as close to 0.0042 as possible. If bulls continue to defend this level, the market will likely create a base before climbing to our target of 0.007. The process may take a month.

Daily Chart of Ark/Ethereum on Binance

As of this writing, the Ark/Ethereum pair is trading at 0.004695 on Binance.

Summary of Strategy

Buy: As close to 0.0042 as possible.

Target: 0.007

Stop:  0.0039

 

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.

Featured image courtesy of Shutterstock.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.
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