Trade Recommendation: Enjin Coin/Ethereum

The Enjin Coin/Ethereum pair (ENJ/ETH) started its bull run on December 16, 2017 when it took out resistance of 0.0001. The breakout attracted momentum traders and trend followers who helped push the price to as high as 0.00048339 on January 5, 2018. In less than a month, the pair’s value grew by 383.39%. Those who bought the breakout took the chance to lock their gains.

Faced with heavy selling pressure, ENJ/ETH nosedived to 0.00005743 on January 10. Bottom pickers bought the dip and lifted the market to 0.00039 on January 12. The lower high showed the bulls were exhausted. As a result, ENJ/ETH continued to plunge until it bottomed out at 0.0001421 on February 5. The market has been rallying since, and that has opened an opportunity for you to buy the reversal.

Technical analysis show that Enjin Coin/Ethereum is about to breakout at 0.00028 resistance, and trigger an inverse head and shoulders reversal pattern on the daily chart. To complete the breakout, the pair needs to print around 5 million Enjin Coin units. Those who bought the lower high are likely to take profits at the resistance. The market needs buyers to absorb the selling pressure.

The strategy is to buy the breakout at 0.00028 once the volume requirement is met. If bulls claim the resistance, the market will attract momentum traders and trend followers which can help raise the price to our target of 0.0004. The process may take more than a month.

Daily Chart of Enjin Coin/Ethereum on Binance

As of this writing, the Enjin Coin/Ethereum pair is trading at 0.00028251 on Binance.

Summary of Strategy

Buy: Breakout at 0.00028 after the market prints 5 million Enjin Coin units.

Target: 0.0004

Stop:  0.00026 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.

Kiril is a CFA Charterholder and financial professional with 5+ 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 funds, as he does his own crypto research and is a Product Manager at Mitre Media. 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.