Trade Recommendation: Augur (REP)
Our May 1, 2019 trade recommendation for Augur (REP/USD) hit its target. On May 16th, the cryptocurrency rallied to as high as $25.78. Those who stuck to the trade plan grew their investments by over 47% in a couple of weeks.
We hope you took profits quickly because the crypto token immediately retraced after hitting our price target. Augur nosedived to as low as $13.688 on July 5th. That was a brutal dump of close to 46% in about a month and a half. Nevertheless, the cryptocurrency is showing signs that it is done correcting.
Technical analysis shows that REP/USD is respecting our current range low of $14.50. We have this view for several reasons.
First, bears have been trying to breach this level since July 2nd. However, bulls are standing firm. All the dips below $14.50 have been bought up so far. This is an encouraging signal.
In addition, Augur is oversold on the daily RSI. This tells us that bears are already exhausted. The declining volume supports this interpretation. Market participants are no longer interested in selling at current levels. With supply diminishing at a high demand area, the very least that we can expect is a bounce.
The strategy is to buy as close to $14.50 support as possible. If bulls can stay above this level, they will likely generate a rally to our targets of $19.25 and $24.
The process may take a month.
Daily Chart of Augur/US Dollar on Kraken
Summary of Strategy
Buy: As close to $14.50 as possible.
Targets: $19.25 and $24.
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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