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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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    4.5 stars on average, based on 15 rated postshttp://www.linkedin.com/in/konstantindimov




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    Recommendations

    Trade Recommendation: TRON

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    The TRON/US Dollar (TRX/USD) pair has been in a downtrend since it failed to take out resistance of $0.085 on May 6, 2018. This showed market participants that the pair was not yet ready to launch a major bull run. As a result, investors dumped positions to either cut their losses or preserve gains.

    TRX/USD has been in a downtrend for over two months now. However, long-term investors shouldn’t lose sleep because a reversal appears to be in sight.

    Technical analysis show that Tron/US Dollar is very likely to bottom out at support of $0.03. We have several reasons to support this view.

    First, $0.03 is the market’s strongest support. Bulls have successfully defended this level since February 2018. More importantly, TRX/USD has always bounced whenever it hit the support. This is an area where demand exceeds supply.

    Second, TRX/USD is creating a falling wedge pattern. At $0.03, the pair would be at the narrowest point of the wedge. By then, an explosion would be inevitable. We believe the explosion would have a bullish bias considering that demand is very likely to be high at $0.03.

    Lastly, both the daily RSI and MACD are flashing bullish divergence signals. This indicates that the market is gaining strength.

    The strategy is to buy as close to $0.03 as possible. If the market can stay above this level, bulls will likely inspire a rally to our initial target of $0.05. Take that out and the market has an easier path to $0.06.

    The process may take more than a month.

    Daily Chart of TRX/USD on Bitfinex

    As of this writing, the TRX/USD pair is trading at $0.0356 on Bitfinex.

    Summary of Strategy

    Buy: As close to $0.03 as possible.

    Target: $0.05 and then $0.06.

    Stop: $0.0295

     

    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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    3.6 stars on average, based on 201 rated postsKiril is a financial professional with 4+ 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 ETFs, as he does his own crypto research and is the subject matter expert at ETFdb.com. 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: ZRX

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    The 0x/Bitcoin (ZRX/BTC) pair started another bull run on April 17, 2018 when it took out resistance of 0.0001. This triggered the rounding bottom pattern on the daily chart. The breakout pushed the pair to as high as 0.000219 on May 10. ZRX/BTC sharply corrected from that point. The good news is that it appears that the corrective period is over.

    Technical analysis show that 0x/Bitcoin has taken out resistance of 0.000155. This activated the small cup and handle continuation pattern on the daily chart. The breakout was validated by heavy volume and a strong rally to 0.00018629 on July 15. In addition, technical indicators look healthy. The MACD and the RSI are not flashing any bearish signal.

    Furthermore, ZRX/BTC looks bullish long-term. It appears to be in a very wide ascending channel. So far, the pair has respected both support and resistance levels.

    Lastly, the pair seems to be respecting support of 0.000155. ZRX/BTC dropped to as low as 0.00014816 but bulls were quick to respond and reclaim the support.

    The strategy is to buy the dip as close to 0.000155 as possible. If ZRX/BTC manages to stay above this level, bulls are likely to inspire a rally to our target of 0.00022.

    The process may take less than a month.

    Daily Chart of 0x/Bitcoin on Binance

    As of this writing, the ZRX/BTC pair is trading at 0.00015585 on Binance.

    Summary of Strategy

    Buy: As close to 0.000155 as possible.

    Target: 0.00022

    Stop: 0.00015

     

    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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    3.6 stars on average, based on 201 rated postsKiril is a financial professional with 4+ 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 ETFs, as he does his own crypto research and is the subject matter expert at ETFdb.com. 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: Decred

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    The Decred/Bitcoin pair (DCR/BTC) launched its bull run on May 11, 2018 when it took out resistance of 0.01. This triggered the large inverse head and shoulders reversal pattern on the daily chart. The breakout pushed the pair to as high as 0.015 on June 14. DCR/BTC has been correcting since. However, this can be your chance to buy the breakout.

    Technical analysis show that the uptrend of DCR/BTC is very much alive. We have several reasons that support this view.

    First, the market plummeted to as low as 0.009 on July 13. This should have triggered many stop losses but the low volume during this pullback shows that investors have strong hands. Their faith in the market was so strong that the technical breach did not bother them. The market established a bullish higher low at 0.009 and rallied.

    Second, the rally was accompanied by bullish signals from technical indicators. The daily RSI sharply bounced after registering oversold readings. Plus, the daily MACD reveals a bullish cross. Lastly, the 4-day, 8-day, and 21-day moving averages are attaching to the daily candle’s body while trending up.

    The strategy is to buy the dip as close to 0.0095 as possible. If the market manages to stay above this level, bulls are likely to inspire a rally to our initial target of 0.014. Take that out and the market can achieve the target of the inverse head and shoulders at 0.016.

    The process may take more than a month.

    Daily Chart of Decred/Bitcoin on Bittrex

    As of this writing, the DCR/BTC pair is trading at 0.0098 on Bittrex.

    Summary of Strategy

    Buy: As close to 0.0095 as possible.

    Target: 0.014 first and then 0.016.

    Stop: 0.009

     

    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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    3.6 stars on average, based on 201 rated postsKiril is a financial professional with 4+ 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 ETFs, as he does his own crypto research and is the subject matter expert at ETFdb.com. 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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