Trade Recommendation: Hshare/Bitcoin
The Hshare/Bitcoin (HSR/BTC) pair flashed signs of bullishness on December 18, 2017 when it took out resistance of 0.0012. The breakout attracted trend followers and momentum traders who helped push the market to as high as 0.002667 on December 31. In two weeks, the pair grew by over 122%. Those who bought the breakout started to take profits.
With sellers dominating the market, HSR/BTC snapped the 0.00178 support on January 2, 2018. From that point, the market turned increasingly bearish as it posted a series of lower highs and lower lows until it bottomed out at 0.00616 on March 18. The pair has been rallying since and it looks ready to start a another bull run.
Technical analysis show that Hshare/Bitcoin is poised to take out resistance of 0.0012 and trigger the rounding bottom reversal pattern on the daily chart. To complete the breakout, the pair must print at least 1.2 million units of Hshare. Those who bought the bottom are likely to take profits at the resistance. The market needs buyers to offset the increased selling activity.
The strategy is to buy the breakout at 0.0012 after the required volume is met. If bulls take out the resistance, they may ignite a rally that takes the market to our target of 0.001780. Sell immediately because the market will most likely correct at that level before resuming its bull run.
The process may take a month.
Daily Chart of HSR/BTC on Binance
As of this writing, the Hshare/Bitcoin pair is trading at 0.001118 on Binance.
Summary of Strategy
Buy: Breakout at 0.0012 with volume of 1.2 million units of Hshare.
Stop: 0.001125 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.
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