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Trade Recommendation: Intact Financial

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Technical Overview

  • Since double-bottoming in 2008 and 2009 at $26 (violet horizontal trendline in Figure 1), Intact Financial (IFC.TO) has enjoyed a four-fold increase. During the 2013, 2016 and 2018 corrections, the stock found support at a long-term trendline (support – green trendline; retests – green arrows).

Figure 1. IFC.TO Weekly Chart

  • Zooming in, after topping in November’17, IFC completed a H&S pattern (tops – yellow ellipses, neckline – yellow trendline in Figure 2).
  • In January, March, April, and May, all up-moves halted at a well-defined short-term resistance (red trendline). Yesterday (May 25), the stock managed to break and close above the resistance.
  • Today, the stock closed in positive territory, whereas the Financial sector (TTFS.TO) declined by over 0.5%.
  • The $95 level had served as support on multiple occasions in 2018 (purple horizontal trendline and arrows).

Figure 2. IFC.TO Daily Chart

Implications

  • The bounce off of the long-term support and the break above the short-term resistance are considered constructive.
  • The stock is expected to find support in the $95 – $96.50 range during pullbacks (i.e. at the red and purple trendlines).
  • The downward target from the H&S pattern was nearly met during the May decline (target – $92.25 – white vertical trendline in Figure 2, May 9 low – $92.65 – last purple arrow).

Outlook

  • Short-term bullish as long as the stock remains above $95
  • Long-term bullish as long as the stock remains above its long-term support (green trendline in Figure 1).

 Trade Recommendation

  • Buy the stock at current levels ($97.50 at EOD on May 24).
  • Target: Half at $101 (the January low which served as resistance in March – second red arrow). Other half at $108 (origin of the late 2017 decline).
  • Stop: Half upon a close below $95. Other half upon a close below the long-term support (currently at approximately $93.50).

Disclosure: No position yet but may initiate at any time. Will likely recommend the stock to my clients as a potential play within the financial sector.

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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    4.3 stars on average, based on 16 rated postshttp://www.linkedin.com/in/konstantindimov




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    Trade Recommendation: Litecoin

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    To say that Litecoin (LTC/USD) is having a rough year is an understatement. It came off lows of $22.54 on December 7, 2018. At that price point, the market was down by over 92% from the 2018 peak of $306.85. It seems that the market may have completed its cycle.

    A closer look at Litecoin shows that it is now trading at a parabolic support. This means that the market came back to where it was last year before it ignited the bull run that saw Litecoin ascend to as high as $370.78 in December 2017. It appears that the market has gone from markup to distribution, and to mark down in a span of a year and a half. If our read is correct, Litecoin should be back in the accumulation stage now.

    If that’s the case, now is one of the best times to bottom pick the market.

    Technical analysis shows that LTC/USD may have established a short-term bottom at $22.54. We have several reasons to support this view.  

    First, the area of $22 is a strong weekly support level. Bears tried to breach it back in May 2017 but bulls rejected lower prices. The rejection led to the breach of resistance of $31.25 in June 2017. Litecoin never looked back until now.

    Also, Litecoin printed a large bullish divergence on the 12-hour RSI. In addition, we can see that volume has come to life ever since the market touched these levels. These indications tell us that buyers are starting to scale in.

    The strategy is to buy as close to $22.50 as possible. If the bulls hold this level, our targets are $26.86 and $31.25.

    The process may take less than a month.

    12-Hour Chart of Litecoin/US Dollar on Bitfinex


    As of this writing, the Litecoin/US Dollar pair is trading at $24.01 on Bitfinex.

    Summary of Strategy

    Buy: As close to $22.50 as possible.

    Targets: $26.86 and $31.25.

    Stop:$21.50

     

    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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    3.8 stars on average, based on 286 rated postsKiril 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 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: Dash

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    Dash (DASH/USD) appears to be in a freefall. It dropped to as low as $57 on December 6, 2018. At that price, the market was down by over 95% from the 2018 high of $1,400. On the surface, this cryptocurrency looks like it is ready to die. A closer look, however, shows us that Dash is ready to be reborn.

    Technical analysis shows that Dash may have bottomed out on December 6. We have several reasons to support this view.

    First, we look at the volume of the weeks leading to the drop of $56.

    On the week of November 19, Dash printed volume that’s over 174% of its weekly average. More importantly, the volume buzz was the largest that this coin printed since April 2017. Then a couple of weeks later, the market generated volume that’s over 188% of the weekly average. It was also greater than the volume buzz of the week of November 19. All in all, the combined volume of those two weeks screams capitulation.

    On top of that, the move down to $56 completed the market cycle. Dash has given up all the gains it made last year. With a clean slate, the smart money can start accumulating at current levels. It looks like they’re already doing that. The sudden volume uptick on December 7 is a  clue that someone is buying in bulk.

    The strategy is to buy as close to $56 as possible. It is very likely that the market will revisit that level again soon. If bulls stay above it, then we might see a quick rally to our target of $86.50.

    The process may take a month.

    Daily Chart of Dash/US Dollar on Kraken

    As of this writing, the Dash/US Dollar pair is trading at $70.45 on Kraken.

    Summary of Strategy

    Buy: As close to $56 as possible.

    Target: $86.50

    Stop: $53.50

     

    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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    3.8 stars on average, based on 286 rated postsKiril 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 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: TRON

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    TRON (TRX/BTC) is one of the few coins that have remained stable in spite of the massive November selloff. While bears worked hard to push the market below the yearly low of 0.00000259, bulls fought back and managed to lift the market above 0.000003. This happened twice: when the market dropped to 0.00000273 on September 12 and on November 20 when it touched 0.00000284.

    As a result, the market moved back and forth between 0.000003 and 0.000004 for months. Recently, however, TRX/BTC has been showing signals that it is ready to break out of the range. This gives us a very good opportunity to anticipate the breach of the range high.

    Technical analysis shows TRX/BTC is poised to break out of a triple bottom pattern and launch a bull run. We have several reasons to support this view.

    First, even though the market has been trading within a range, a closer look at the 12-hour chart reveals that it has also printed a higher high of 0.00000429 on October 8 and higher low of 0.00000284 on November 20. At the very least, this tells us that bulls are expanding their territory.

    In addition, we can see the 200 moving average crawling below the 12H candles. The flip from resistance to support of this indicator is bullish. The 200 MA now acts as a support on the 12H chart that can help TRX/BTC take out the range high.

    The strategy is to wait for the market to breakout and retest 0.000004. This bear market has been notoriously setting up bull traps. Many coins have broken out of the range high with heavy volume only to find themselves back to support. Thus, it would be best to buy the retest of the breakout to be on the safe side.

    If the market follows the script, the target is 0.00000523. The process may take less than a month.

    12-Hour Chart of TRON/Bitcoin on Binance

    As of this writing, the TRON/Bitcoin pair is trading at 0.00000382 on Binance.

    Summary of Strategy

    Buy: Retest of 0.000004 after the breakout.

    Target: 0.00000523

    Stop: 0.00000386 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.

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    3.8 stars on average, based on 286 rated postsKiril 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 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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