Trade Recommendation: Enigma
Enigma (ENG/BTC) is a market that’s ripe for a break out. The market has been stuck in accumulation for over eight months. During this period, Enigma has been range trading between 0.00007 and 0.000118. While in accumulation, Enigma touched the top end of the range of 0.000118 four times already. We believe bulls will finally take it out on the next rally.
Technical analysis shows that ENG/BTC is almost ready to break out from an inverse head and shoulders pattern on the daily chart. We have several reasons to support this view.
First, we can see that volume has been on the up and up since March 8, 2019. This is an indication that the market is in the latter stages of base building. In technical analysis, volume precedes price. Thus, rising volume is often a prelude to a strong move up.
In addition, the 50-day moving average (MA) is about to cross above the 200-day MA. Many momentum traders wait for this golden cross before entering the market. That’s because the crossover is one of the best buy signals. It indicates that the market is turning bullish.
The strategy is to buy the retest of the breakout of 0.000118. If bulls are able to flip the resistance into support, Enigma will turn bullish and climb to our targets of 0.00015 and 0.0002.
The process may take less than a month.
Daily Chart of Enigma/Bitcoin on Binance
As of this writing, the Enigma/Bitcoin pair is trading at 0.00010658 on Binance.
Summary of Strategy
Buy: Retest of 0.000118 breakout.
Targets: 0.00015 and 0.0002.
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.