Trade Recommendation: Loom Network
On October 12, 2018, Loom Network (LOOM/BTC) appeared ready to breach resistance of 0.00001964. It climbed as high as 0.00002421 and generated volume that’s over 400% of the market’s daily average. Unfortunately for breakout traders, Loom Network failed to sustain its bullish momentum.
The market went below 0.00001964 on October 15 and retested it as a resistance level on October 21. The price movement was a clear signal to market participants that LOOM/BTC was not yet ready to start a bull run. As a result, the market quickly turned bearish as participants who bought near the failed breakout had to cut their losses. However, we can use this pullback to bottom pick the market.
Technical analysis shows that LOOM/BTC is still range trading between 0.0000101 and 0.00001964. The range is wide so there’s a lot of profits to be made by simply buying the support and selling the resistance.
We’re fairly confident that the market is headed back to the bottom end of the range due to the recent price action. LOOM/BTC took out the range midpoint of 0.00001487 on November 17. While the market bounced on November 25 because of oversold conditions, the range midpoint acted as a resistance. This tells us that the market will likely touch support of 0.0000101 soon.
The strategy is to buy as close to 0.0000101 as possible. If the bulls hold this level, Loom Network might once again rally to the top end of the range and our target of 0.00001964.
The process may take a month.
Daily Chart of Loom Network/Bitcoin on Binance
As of this writing, the Loom Network/Bitcoin pair is trading at 0.00001225 on Binance.
Summary of Strategy
Buy: As close to 0.0000101 as possible.
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.