Trade Recommendation: Basic Attention Token
Our March 31, 2019 trade recommendation for Basic Attention Token (BAT/USD) hit both targets. Those who stuck to the trading plan grew their investments by almost 70% when the market skyrocketed to as high as $0.434 on April 20th.
BAT/USD overshot both of our targets but we weren’t worried. By the time it hit $0.493 on April 21st, the market was overextended. It showed a large bearish divergence on the daily RSI. On top of that, the daily candle on April 21st had a long wick on top of its body. This was a clear signal that holders were taking heavy profits.
As expected, BAT/USD corrected. This now gives us a chance to buy the dip.
Technical analysis shows that BAT/USD is generating a large falling wedge on the daily chart. A falling wedge is a continuation pattern. It suggests that Basic Attention Token will very likely resume its uptrend once the correction is over.
The falling wedge appears to have its apex at support of $0.30. By the time BAT/USD hits that level, it will likely be oversold on the daily RSI. The expected selling relief due to oversold conditions plus high demand at a support area is a proven formula for a bounce in most cases.
The strategy is to buy on dips as close to $0.30 as possible. As long as BAT/USD is above this level, it will likely rally to our target of $0.49.
The process may take less than a month.
Daily Chart of Basic Attention Token/US Dollar on Bittrex
As of this writing, the Basic Attention Token/US Dollar pair is trading at $0.349 on Bittrex.
Summary of Strategy
Buy: As close to $0.30 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.
Featured image courtesy of Shutterstock.