Trade Recommendation: MCO
Our January 3, 2019 trade recommendation for MCO/Bitcoin (MCO/BTC) hit its target. On January 5th, the market climbed as high has 0.00076. Those who followed the trade plan grew their investments by over 31% in just a couple of days.
A month of consolidation after hitting our target price, the crypto token eventually took out resistance of 0.0007 and blasted off. It printed a 2019 high of 0.001006 on March 15th. From that point, the cryptocurrency showed signs of bullish exhaustion. It started a massive correction on April 30th and the retracement drove the price to as low as 0.00045 on July 10th.
Nevertheless, the cryptocurrency is starting to show signs of bearish exhaustion. We are seeing it create a setup for a nice bounce.
Technical analysis shows that MCO/BTC is working hard to reclaim key support of 0.0005. We have this view because even though the market breached 0.0005 on July 8th, bulls are struggling to regain control. Fortunately for them, technical indicators are flashing signs of reversal.
First, we can see the daily RSI flash a long bullish divergence. This tells us that bulls are gaining significant strength despite falling prices. Also, the daily volume is looking anemic. This is an indication that sellers are losing interest to dump at current prices. With the market trading at a demand area as supply dwindles, we have a formula that makes a bounce a very likely scenario.
The strategy is to buy once MCO/BTC stabilizes at 0.0005. If bulls can keep the price from falling further, the coin will likely rally to our target of 0.0007. Take that out and 0.0009 is next.
The process may take less than a month.
Daily Chart of MCO/Bitcoin on Binance
Summary of Strategy
Buy: As close to 0.0005 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.
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