Trade Recommendation: DOCK
We have been keeping tabs on DOCK (DOCK/BTC) since it climbed from a low of 0.00000190 on August 14, 2018, to a high of 0.00000683 on October 28. Those who were able to ride the rally grew their investments by close to 260% in two and a half months.
At 0.00000683, the market was ripe for profit-taking. The market was in oversold territory on the 4-hour chart. On top of that, the 4H RSI showed a long bearish divergence. Lastly, the daily candle generated a long wick above the body suggesting that bulls were exhausted.
With these signals, DOCK unraveled and plummeted to as low as 0.00000251 on November 20. Nevertheless, we believe that the worst of this correction is behind us.
Technical analysis shows that DOCK/BTC is recovering support of 0.0000028. This level is important to the market as it appears to be the strongest weekly support area. If you zoom out to the daily or even weekly time frame, you will see that there’s a lot of buyer interest in this area. Thus, the market has a slightly bullish outlook as long as it stays above 0.0000028.
In addition, DOCK appears to have completed the three-drives down pattern. The first breach took out support of 0.0000043 on November 4, the second eliminated 0.00000374 on November 14, and the third broke 0.00000336 on November 16. With this sell pattern complete, bears look exhausted and the market appears poised for a bounce.
The strategy is to buy at the current price of 0.00000279. If DOCK/BTC reclaims the 0.0000028 support, the market will likely trade sideways for some time before it can reach our targets 0.00000336 and 0.00000374.
The process may take more than a month.
4-Hour Chart of DOCK/Bitcoin on Binance
As of this writing, the DOCK/Bitcoin pair is trading at 0.00000279 on Binance.
Summary of Strategy
Buy: Current price of 0.00000279.
Target: 0.00000336 and 0.00000374
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.
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