Trade Recommendation: Augur
Augur (REP/USD) is a market that is in the early stages of an uptrend. We have this view because this coin spent six months in accumulation from September 2018 to March 2019. During this period, the market traded in a wide range between $5.50 and $17. The six-month accumulation effectively ended the downtrend. Most importantly, it gave this altcoin the time to establish a solid base for the uptrend.
Technical analysis shows that REP/USD has breached resistance of $17 on April 2, 2019. This triggered the breakout from an inverse head and shoulders pattern on the daily chart. The breakout ignited a rally that sent Augur to as high as $25.482 on April 3rd.
With this rally, we have now established a new range for Augur. The swing high failure on April 3rd is now our range resistance. On the other hand, the former resistance of $17 is now our support. Also, technical indicators affirm our position that Augur has established a key support at the price level of $17. Both the 50-day moving average (MA) and the 100-day MA are crawling around that price area. They will act as additional support levels that will keep Augur above $17.
The strategy is to buy on dips as close to $17 as possible. If bulls can stay above this level, they will likely generate a rally to our target of $25.50.
The process may take a month.
Daily Chart of Augur/US Dollar on Kraken
As of this writing, the Augur/US Dollar pair is trading at $20.226 on Kraken.
Summary of Strategy
Buy: As close to $17 as possible.
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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