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.

Target: $0.49

Stop: $0.285

 

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.