Trade Recommendation: Loom Network

Our December 6, 2018 trade recommendation for Loom Network (LOOM/BTC) hit its target. On March 11, 2019, the market rallied as high as 0.00002019 after breaching resistance of 0.000016. Those who followed the trade recommendation grew their capital by over 80% in three months.

If you missed this trade recommendation, don’t worry because Loom Network is just getting started. However, a quick retracement is in order to give technical indicators a chance to cool off. The pullback would also enable the market to build a new base and keep the uptrend sustainable. The good news is that the market is reacting as expected.

Technical analysis shows that LOOM/BTC is currently correcting after climbing as high as 0.00002019 on March 11. The large wick on the daily candle shows the emergence of sellers. This makes sense as those who successfully bottom picked the market took profits.

Nevertheless, Loom Network remains bullish. The breakout from a rounding bottom pattern on March 11 has enabled the market to finally escape range accumulation.

On top of that, the market is also painting a bull flag on the daily chart suggesting the continuation of the current trend. The declining volume after the breakout affirms this view. This indicates that supply is starting to dry up. Once bears have nothing left in the tank, Loom Network will resume its ascent.

The strategy is to buy as close to 0.000016 as possible. If the bulls hold this level, Loom Network might rally to our target of 0.000023.

The process may take less than a month.

Daily Chart of Loom Network/Bitcoin on Binance

As of this writing, the Loom Network/Bitcoin pair is trading at 0.00001812 on Binance.

Summary of Strategy

Buy: As close to 0.000016 as possible.

Target: 0.000023

Stop: 0.0000153

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.

Kiril 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 funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, 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.