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.

Target: $45

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.

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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