Trade Recommendation: Augur
The Augur/US Dollar pair (REP/USD) managed to go as high as $95.00 in May 2018 but it has been dropping since. The bearish conditions have driven the pair to as low as $27.301 on August 4. Having lost over 70% of its value in two months, it is likely that many investors have forgotten about Augur. Nevertheless, recent activity shows that bulls are showing up.
Technical analysis show that REP/USD is positioning to take out two reversal patterns: a falling wedge and an ascending triangle. The key level to take out is $30.00. Technical indicators suggest that a breakout is likely.
First, we see the RSI create a triple bottom at support of 34 plus it is flashing a bullish divergence. This shows that the pair is gaining bullish momentum.
More importantly, there are extreme volume surges in the market. REP/USD has not printed this level of volume since May 2018.
The strategy is to buy the breakout at $30 as long as the market generates volume of 10,000 Augur units. We expect heavy selling at $30. Therefore, the market needs buyers to absorb the selling pressure.
Once REP/USD takes out $30, it can quickly climb to our target of $45.
The process may take less than a month.
Daily Chart of Augur/US Dollar on Kraken
As of this writing, the Augur/US Dollar pair is trading at $28.78 on Kraken.
Summary of Strategy
Buy: Breakout at $30 as long as volume of 10,000 Augur units is met.
Stop: $28.50 after the breakout.
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.