Trade Recommendation: Ethereum
This is a longer term buy trade. Over the last 3-4 weeks the key level has been the Monthly Pivot Range high. You can see initially it was resistance, then a close above this level on April 23 signified a return to the bullish bias. This upside bias remains intact as you can see a couple of tests to the Monthly Pivot Range high level proved supportive with the 2 Hammer candlesticks shown.
At this point, the only real issue keeping the market from moving higher, technically speaking, is the Weekly Pivot Range and the 3 Day Rolling Pivot Range which is currently at a comparable level.
We should be confident in the support level of the Monthly Pivot Range high. So let’s look for a good entry point above the Weekly Pivot high. If we prudently await a confirmation before going long, this will increase our chances of success, by buying on strength. Using the Daily chart we will want to buy on a close above the Weekly Pivot Range high level. Place the stop loss just below the Weekly Pivot low and the profit targets stated below.
Entry Price: 725.00
Stop Loss: 625.00
Profit Targets: First profit target 945.00. Second profit target 1230.00. Once price reaches 825.00 raise the stop loss to breakeven. Then if the market follows through to higher levels manage the trade by trailing a stop loss 70 points behind until second profit target is reached or stopped out.
Note: If triggered, look for the trade to play out over a period of 72 hours or longer. Also, feel free to use your own discretion when managing the trade. You may want to hold a portion for a bigger move beyond the second profit target, as I think a breakout on this setup could have additional profit.
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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