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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: Cardano

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    The Cardano/Bitcoin (ADA/BTC) pair started to show signs of weakness just as it registered its 2018 high of 0.00008788 on January 4. Unfortunately for buyers at the top, the market would go on a long bear run for the next nine months. ADA/BTC went so deep in bear territory that it lost almost 90% of its value.

    As disheartening as it may sound, recent price action gives us something to look forward to.

    Technical analysis show that Cardano/Bitcoin has taken out resistance of 0.000011 yesterday, September 19. The breach triggered the breakout from the large falling wedge on the daily chart. This pattern was responsible for keeping the market bearish for most of the year.

    The breakout looks convincing, too. The market printed volume that’s almost twice its daily average. The last time ADA/BTC generated the same volume buzz was back in April 2018.

    Currently, ADA/BTC is pulling back due to overbought conditions on the hourly chart. Thus, it is very likely for the market to temporary go below the breakout. This can be your opportunity to buy cheap.

    The strategy is to buy as close to 0.0000108 as possible. If bulls can stay above this level, they will attract more bottom fishers and bargain hunters. This will likely generate a rally to our target of 0.000025.

    The process may take a month.

    Daily Chart of Cardano/Bitcoin on Binance

    As of this writing, the Cardano/Bitcoin pair is trading at 0.00001128 on Binance.

    Summary of Strategy

    Buy: As close to 0.0000108 as possible.

    Target: 0.000025

    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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    3.6 stars on average, based on 235 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: Reddcoin

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    The Reddcoin/Bitcoin (RDD/BTC) pair is giving crypto enthusiasts something to be excited about. The pair took out resistance of 0.0000004 on August 27, 2018. The breach triggered the breakout from a falling wedge pattern.

    Breaking out from a falling wedge is something that you can observe in many altcoins. However, many of these altcoins significantly retraced. Some even went below the breakout. This is where RDD/BTC is unique. Its recent price action supports our view that the worst of the bear market is over.

    Technical analysis shows that RDD/BTC is creating a large pennant on the daily chart. This structure is a bullish continuation pattern. It means that the pair is currently consolidating but it confirms the trend reversal. This period is actually crucial as it enables RDD/BTC to build a strong base that will help keep its uptrend sustainable.

    The strategy is to buy the breakout at 0.00000058 after the pair prints volume of at least 300 million Reddcoin units. Volume has been thin recently, which is a characteristic of a consolidation pattern. A spike in volume indicates the end of consolidation and the resumption of the uptrend.

    After the breakout, the initial target is 0.0000008. The process may take less than a month.

    Weekly Chart of Reddcoin/Bitcoin on Bittrex

    As of this writing, the Reddcoin/Bitcoin pair is trading at 0.00000053 on Bittrex.

    Summary of Strategy

    Buy: Breakout at 0.00000058 after volume of at least 300 million Reddcoin units.

    Target: 0.0000008

    Stop: 0.00000055 after the breakout.

     

    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 235 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: CyberMiles

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    The CyberMiles/Bitcoin (CMT/BTC) pair breached resistance of 0.000014 on August 24, 2018. This triggered the breakout from the falling wedge pattern on the daily chart. The breakout looks convincing as the pair printed volume that’s over 830% of its daily average. Consequently, CMT/BTC climbed to as high as 0.00001889.

    Unfortunately for breakout buyers, the price action was interpreted by bottom fishers as an opportunity to take profits. As profit-taking commenced, CMT/BTC retraced. Less than a month later, it appears that the correction is over.

    Technical analysis show that CMT/BTC is forming a durable support at 0.000012. While this level is slightly below the breakout, the market remains bullish because it is creating a higher low setup. This means that participants are no longer waiting for CMT/BTC to revisit recent lows of 0.00001099, which was posted on August 14 before entering long positions.

    In addition, bulls rescued the market when it dropped to as low as 0.00001201 yesterday, September 17. What’s even more interesting is that there was a 230% volume surge yesterday. This indicates that the base building after the breakout is almost over.

    The strategy is to buy as close to 0.000012 as possible. CMT/BTC is correcting to cool off technical indicators in the lower time frames. If the market can stay above this new support, it will likely climb to our target of 0.000021.

    The process may take less than a month.

    Daily Chart of CyberMiles/Bitcoin on Binance

    As of this writing, the CyberMiles/Bitcoin pair is trading at 0.00001289 on Binance.

    Summary of Strategy

    Buy: As close to 0.000012 as possible.

    Target: 0.000021

    Stop: 0.0000115

     

    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 235 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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