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Trade Recommendation: Boeing

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Technical Overview

  • Boeing’s stock has enjoyed an over 100% appreciation since May 2017, rising from under $180 to over $370 in February 2018. During this time, a key support carried prices higher (green trendline in Figure 1). Note how the support held on a closing basis on all but one case since the mid-March correction ensued.
  • On March 13, 2018, the stock completed a H&S pattern with a downside target of $305 (tops – red circles, neckline – red trendline, target – yellow vertical line).This target has not been met yet.
  • During last week’s broad market ascent, the stock was an underperformer – moving sideways and finding resistance in the $336 – $340 area.

Figure 1. BA Daily Chart

Implications

  • While the stock has been able to hold its key support, the lack of follow-through price action to the upside is indicative of weakness. A confirmation, however, is still required before shorting the stock.
  • Given the stock’s swift move down after breaching the neckline, it is expected that the downside target will be met when the green trendline is broken (i.e. on the next leg down).

Outlook

  • Neutral while the stock is above the green trendline and below $340.
  • Bearish once the green trendline is broken.

Trading Recommendation

  • Short the stock upon a close below the green trendline (currently at $328).
  • Target: $300 – the origin of January’s near-vertical ascent, as it is often the case that such spikes are retraced 100% (orange horizontal trendline). Also, this level is just below the H&S target.
  • Stop: A close above $342 – the high of the doji candle on March 21 (violet arrow).

Benefit of Recommended Trade

  • Favourable risk-reward (1:2). Moreover, as time goes by, the risk-reward profile of the recommended trade will be improving as the upward-sloping, green trendline is rising by roughly 60 cents/day. More specifically, by next Tuesday (April 24), the green trendline will be at $332, translating to the risk-reward of the trade nearing 1:3, assuming a $331 entry, a $300 target, and a $342 stop level.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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    4.3 stars on average, based on 16 rated postshttp://www.linkedin.com/in/konstantindimov




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    Recommendations

    Trade Recommendation: EOS

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    EOS (EOS/USD) is a market that looks primed to explode.

    It established a short-term bottom of $1.55 on December 7, 2018. At that point, the market lost over 93% from its 2018 high of $23.029 on April 29. While this crypto looked dreadful when it recorded its 2018 low on December 7, volume on that day was significantly heavy. This told us that the smart money was accumulating positions in bulk while stopping the bleeding at the same time.

    With buyers emerging, EOS entered an accumulation period as it range traded between $1.75 and $3 for over two months. This period ended yesterday when the price decided to trend higher.

    Technical analysis shows that EOS took out resistance of $3 on February 18, 2019. This triggered the breakout from range accumulation, which may have likely signalled that the bottom is in. Also, the breakout looks valid. Yesterday, the coin printed volume that’s over 300% of its daily average. This tells us that sentiment has likely shifted from bearish to bullish.

    Yesterday’s move, however, pushed EOS to overbought territory. Also, the 200-day moving average is acting as a resistance. These signals indicate that this altcoin is due for a pullback. We’ll take this chance to buy on dips.

    The strategy is to buy on the retest of $3. If bulls can stay above this support, they’ll likely gather the momentum to rally to our range midpoint of $4. Take that out and the next target is $5.

    The process may take less than a month.

    Daily Chart of EOS/US Dollar on Bitfinex

    As of this writing, the EOS/US Dollar pair is trading at $3.7441 on Bitfinex.

    Summary of Strategy

    Buy: As close to $3 as possible.

    Targets: $4 and $5.

    Stop: $2.88

     

    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.

    Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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    3.9 stars on average, based on 328 rated postsKiril 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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    Trade Recommendation: Cardano

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    We’ve been tracking Cardano (ADA/BTC) for a while now. After respecting our range high of 0.0000134 on January 10, 2019, we hoped that it will revisit our range low of 0.00000848 so we can bottom pick the market. We had our hopes up on February 6 when the market went below our range midpoint of 0.00001094. Unfortunately, the market quickly extinguished that hope as Cardano recovered 0.00001094 on February 8.

    At that point, we stayed patient to see whether the market would look bearish again. Over a week later, we’re convinced that Cardano is a market that wants to trend higher.

    Technical analysis show that ADA/BTC is poised to take out resistance of 0.0000134. This view comes after the market printed a bullish higher low setup of 0.000001055 on February 6. With this setup, Cardano looks ready to trigger a breakout from an inverse head and shoulders pattern.

    Technical indicators also appear to back up this view. The 12-hour RSI is also printing an inverse head and shoulders pattern. It looks primed to take out resistance of 60. On top of that, we can see the 200 moving average on the 12-hour chart crawling below our range midpoint of 0.00001094. It will act as an additional support and help keep Cardano trending higher.

    The strategy is to buy as close to 0.00001094 as possible. If bulls can stay above this level, they will likely generate a rally to our targets of 0.0000134 and 0.0000167.

    The process may take a month.

    Daily Chart of Cardano/Bitcoin on Binance

    As of this writing, the Cardano/Bitcoin pair is trading at 0.00001164 on Binance.

    Summary of Strategy

    Buy: As close to 0.00001094 as possible.

    Targets: 0.0000134 and 0.0000167.

    Stop: 0.0000105

     

    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.

    Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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    3.9 stars on average, based on 328 rated postsKiril 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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    Trade Recommendation: 0x (ZRX)

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    The primary reason why we don’t allow the fear of missing out lure us into buying coins that have already pumped is because markets always pull back. With a little patience, you can usually get your orders filled at your desired price or at least close to it.

    Take for example 0x (ZRX/BTC). The market climbed as high as 0.000219 in May 2018. Almost a year later, 0x is back at the level where it started trading on Binance at 0.000063. If you bought the top and held on to your positions, you would have lost over 70% of your investments. Nevertheless, it appears that 0x is in a great position to make up for some of those losses. Thus, bottom-pickers and bargain hunters may want to look into this trade.

    Technical analysis shows that ZRX/BTC may be printing a short-term bottom at 0.000063. This price area is a key level for the market. When 0x recovered this support in March 2018, it ignited a strong rally that sent the market to an all-time high of 0.000219 on Binance. Therefore, we expect savvy traders and bargain hunters to go long on the market at current levels.

    So far, participants are reacting according to expectations. 0x showed signs of life as soon as it touched this level on February 14, 2019. On top of that, the daily RSI is printing a bullish divergence. This tells us that bullish momentum is on the rise.

    The strategy is to buy as close to 0.000063 as possible. As long as 0x trades above this level, bulls will likely gather the momentum to climb to our target of 0.00008056.

    The process may take less than a month.

    Daily Chart of 0x/Bitcoin on Binance

    As of this writing, the 0x/Bitcoin pair is trading at 0.0000641 on Binance.

    Summary of Strategy

    Buy: As close to 0.000063 as possible.

    Target: 0.00008056

    Stop: 0.0000605

     

    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.

    Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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    3.9 stars on average, based on 328 rated postsKiril 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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