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Trade Recommendation: Gold/NZD

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The Gold/New Zealand Dollar pair (XAU/NZD) lost all bullishness in October 2012 when it posted a lower high of 2,193.494. The pair then took a turn for the worse as it broke support of 1,900 in April 2013. This triggered the rounding top reversal pattern on the monthly chart.

The breakout ignited a selling frenzy that drove the pair to as low as 1,439.25 in December 2013 (A-wave). In a little over a year, Gold lost almost 35% of its value against the New Zealand Dollar.

At this price level, bulls began to emerge. They protected the 1,460 support until December 2014. With a solid base established, the market began to rally. It went as high as 1,944.854 in June 2016 (B-wave). While bears managed to defend the 1,900 resistance, bulls responded by generating a higher low at 1,594.445 in December 2016 (C-wave).

With a higher low in place, the pair rallied to 1,904.098 in November 2017 (D-wave). The pair has been pulling back since. This could be your opportunity to buy the next higher low.

Technical analysis show that the Gold/New Zealand Dollar pair is creating an ascending triangle pattern. It appears to be at the early stages of an E-wave down. We have several reasons to support this view.

First, we can see that the market retested the 1,900 resistance in May 2018. This serves as a confirmation that bears still control that price level. In addition, the 9-day and 21-day moving averages are detached from the monthly candle. This suggests a potential move down.

The strategy is to buy the dip as close to 1,800 as possible. If bulls stay above this level, they will gather the momentum required to break out of the formation and move to our target of 2,300.

The process may take more than six months.

Monthly Chart of Gold/New Zealand Dollar on OANDA

As of this writing, the Gold/New Zealand Dollar pair (XAU/NZD) is trading at 1,848.413 on OANDA.

Summary of Strategy

Buy: As close to 1,800 as possible.

Target: 2,300

Stop: 1,760

 

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 225 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: Qtum

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The Qtum/Bitcoin (QTUM/BTC) pair is down over 82% year-to-date. The market has been in a long and painful downtrend since early this year. Just looking at the chart can make you feel depressed even if you’ve never invested in the pair. The sharp drops throughout this bear market received little to no resistance from bulls. It’s as if bulls have given up hope.

At this point, however, it pays to be a contrarian. Hopelessness and depression are signs of a bottom. The “smart money” usually comes in when the public has abandoned the market. We’re starting to see this in QTUM/BTC.

Technical analysis show that the pair is hovering just above its historic support of 0.0006. This is the market’s line in sand. Bulls must defend it if they have any hope of keeping the market stable. It looks like they got the memo.

On August 14, 2018, volume suddenly spiked as QTUM/BTC dropped to 0.00061. Volume remained elevated until August 17 when the market printed volume that’s never been seen since April 2018. Someone is buying the support and that someone is buying in bulk. To this someone, the market does not look hopeless or depressing.

The strategy is to buy as close to 0.0006 support as possible. If the backtesting of the historic support is a success, QTUM/BTC might be able to generate the momentum needed to break out of the large falling wedge and rally to our target of 0.001.

The process may take less than a month.

Daily Chart of Qtum/Bitcoin on Binance


As of this writing, the Qtum/Bitcoin pair is trading at 0.000662 on Binance.

Summary of Strategy

Buy: As close to 0.0006 as possible.

Target: 0.001

Stop:  0.00059

 

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 225 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: Litecoin

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Litecoin (LTC/USD) is coming off lows just like many altcoins. The cryptocurrency dropped to as low as $49.33 on August 14, 2018. At that point, the plummet seemed unstoppable. It’s as if bears were determined to short the market even if it was already trading in extreme oversold territory. However, bottom pickers started to enter the market just as LTC/USD was about to breach major support levels.

Technical analysis show that LTC/USD is still trading inside a large falling wedge pattern on the daily and weekly charts, but that won’t be the case for long. The market is approaching the wedge’s apex. As it does, it is also about to hit two major support levels: the parabolic support and the long-term support.

The recent bounce is affirmed by a sudden volume surge. The volume spike may not be extreme but it’s noticeable. This tells us that bulls also see the convergence of supports and they are now buying the market.

Lastly, we can see a large bullish divergence on the daily MACD. The market continues to gather strength even as the price falls.

The strategy is to buy the retest of support as close to $50 as possible. If bulls hold $50, they will likely gather the momentum they need to break out of the falling wedge and quickly climb to our target of $80.

The process may take less than a month.

Daily Chart of Litecoin/US Dollar on Coinbase

As of this writing, the Litecoin/US Dollar pair is trading at $56.05 on Coinbase.

Summary of Strategy

Buy: As close to $50 as possible.

Target: $80

Stop: $48

 

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 225 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.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
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3.6 stars on average, based on 225 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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