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Trade Recommendation: CNY/NZD

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The Chinese Yuan/New Zealand Dollar pair started its uptrend in September 2014 when it took out resistance of 0.194. This triggered the rounding bottom reversal pattern on the weekly chart. The breakout attracted trend followers and momentum traders who helped lift the pair to 0.247 in September 2015. In one year, the Chinese Yuan grew by over 27% against the New Zealand Dollar.

At this price level, the pair was hovering near overbought territory. Those who followed the trend started to take profits. The heavy selling activity drove CNY/NZD down to 0.22 in December 2015. After seeing that the market respected the 61.8% Fibonacci level, bottom pickers bought the dip. The increased buying could only push the pair to 0.235 in January 2016.

With a lower high in place, the pair went into a downward spiral. It generated a series of lower highs and lower lows until it bottomed out at 0.192 in July 2017. The good news for buyers at this level is that the marker has been rallying since. It even looks ready to start another uptrend.

Technical analysis show that the Chinese Yuan/New Zealand Dollar pair has taken out resistance of 0.22. This activated the rounding bottom reversal pattern on the weekly chart. In addition, 0.22 is a firm resistance as it is the 61.8% Fibonacci level. Breakout at this level suggests that bulls are flexing their muscles.

The strategy is to buy as close to 0.22 as possible. If bulls preserve this level, they will likely create a base before moving to our target of 0.247.

The process may take less than six months.

Weekly Chart of CNY/NZD

As of this writing, the Chinese Yuan/New Zealand Dollar pair is trading at 0.222.

Summary of Strategy

Buy: Buy as close to 0.22 as possible.

Target: 0.247

Stop: 0.216

 

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 224 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: Ethereum

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Just like many cryptocurrencies, Ethereum (ETH/USD) is having a terrible month. Investor outlook turned bleak on August 14, 2018 when the market plummeted to $249.93. At that point, Ethereum was down over 80% from its all-time high of $1,424.30. Just as Ethereum started to look hopeless, bottom pickers emerged.

Technical analysis show that ETH/USD is at the apex of a large falling wedge on the daily and weekly charts. The drop to $249.93 was seen as a buying opportunity since bulls came in droves. You can see this in the recent volume surge. We haven’t seen this volume since May.

The increase in demand pushed the market above $285 support. This is critical as $285 is the staging ground of the rally that saw the cryptocurrency skyrocket to $1,424.30. This tells us that ETH/USD may be badly beaten but it is not yet broken.  With the market above $285 again, bulls can use it to gather momentum and break out of the falling wedge.

The strategy is to buy the breakout at $325 as long as the market volume of 380,000 Ethereum is met. Those who bought the bottom might take profits at $325. ETH/USD needs buyers to absorb the selling pressure.

Once ETH/USD takes out $325, it can climb to our target of $520. Sell immediately.

The process may take less than a month.

Daily Chart of Ethereum/US Dollar on Bitfinex

As of this writing, the ETH/USD pair is trading at $304.22 on Bitfinex.

Summary of Strategy

Buy: Breakout at $325 with volume of 380,000 Ethereum.

Target: $525

Stop: $300 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 224 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: Bitcoin

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Bitcoin (BTC/USD) has been on a freefall since July 24, 2018 when its dead cat bounce came to an abrupt end at a price level of $8,496.96. The “smart money” used the rally to dump positions. Even support of $7,400 could not halt the skid. By August 14, BTC was trading below $6,000 and gloom and doom forecasts of a drop to $4,000 once again dominated the conversation.

Just as the calls to short the largest cryptocurrency were becoming louder, the market rallied to $6,628.50 on August 15, obliterating many short positions in the process. It’s not easy to trade Bitcoin, but if you look closer, you can see that there’s a method to the madness. 

Technical analysis show that BTC/USD is about to break out of an inverse head and shoulders pattern on the hourly chart. This is the same pattern that Bitcoin used to spark a rally on July 18, 2018. If you’re looking for a reversal, this pattern should be your primary candidate.

The strategy is to buy the breakout at $6,600 as long as the market generates volume of 500 Bitcoin units on the hourly chart. So far, the $6,600 resistance is proving to be one tough nut to crack. Bitcoin needs heavy volume to help push the price above the resistance.

Once BTC/USD takes out $6.600, it can quickly climb to our target of $7,400. Sell immediately. This might be another pump and dump rally.

The process may take less than a month.

Hourly Chart of Bitcoin/US Dollar on Bitstamp

As of this writing, the BTC/USD pair is trading at $6,351.01 on Bitstamp.

Summary of Strategy

Buy: Breakout at $6,600 with volume of 500 BTC.

Target: $7,400

Stop: $6,500 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 224 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: TRON/Ethereum

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After days of heavy selling, the cryptomarkets are starting to show signs of life. It appears that bears are running out of ammunition just as many altcoins are about to hit long-term support levels. One of those altcoins is TRON/Ethereum (TRX/ETH).

Technical analysis show that TRX/ETH is at the tail end of its corrective period. The falling wedge on the daily chart is about to touch the apex. At the same time, TRX/ETH is hovering above a trendline that’s been keeping the pair’s long-term uptrend alive. We expect demand to surge as the price comes close to this support. Add that to the narrowing trading range and we have the ideal conditions to spark a rally.

Adding fuel to the fire is the daily RSI where we can see a bullish divergence. More importantly, the RSI seems to be creating a broadening wedge pattern. If the support holds, then the next stop of the RSI might be close to oversold territory. This tells us that bulls are brewing a powerful rally.

The strategy is to buy the breakout at 0.000072 after the pair prints volume of more than 110 million TRON units. Even though bears are exhausted, they will do their best to keep market control. TRX/ETH needs buyers to absorb the selling pressure.

Once breakout is complete, the ensuing rally would likely take the pair to our target of 0.0001.

The process may take less than one month.

Daily Chart of TRON/Ethereum on Binance

As of this writing, the TRON/Ethereum pair is trading at 0.00007136 on Binance.

Summary of Strategy

Buy: Breakout at 0.000072 with volume of 110 million TRON units.

Target: 0.0001

Stop:  0.00007 after 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 224 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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