Trade Recommendation: Komodo
Komodo (KMD/BTC) has returned to range accumulation between 0.00014 and 0.00022 with a midpoint of 0.00018. The market was able to go above that range for a couple of months between February to April 2019. Unfortunately, bulls failed to flip 0.00022 resistance into support. The inability to do so put tremendous selling pressure on the market which drove the pair to just below the range low of 0.00014 on May 13th.
Nevertheless, bulls made a strong push back. They rallied and catapulted the market back to just over the range high of 0.00022 on June 8th. Although the market looks bullish, we think it needs one more pullback before it moons. During the pullback is likely the best time to enter long positions.
Technical analysis shows that KMD/BTC is painting an inverse head-and-shoulders on the daily chart. We have this view because the market failed to take out 0.00022 resistance after multiple attempts between June 8th to 10th. With bears holding their ground, Komodo is likely headed to our range midpoint of 0.00018.
In addition, the daily RSI is flashing overheated signals. The overbought conditions will discourage buyers from making a push. This makes it easier for bears to drive the market down.
The strategy is to buy on dips as close to 0.00018 as possible. As long as KMD/BTC is above this level, bulls will likely retarget 0.00022. Take that out and the next target is 0.000288.
The process may take a month.
Daily Chart of Komodo/Bitcoin on Binance
Summary of Strategy
Buy: As close to 0.00018 as possible.
Targets: 0.00022 and 0.000288.
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.