Trade Recommendation: MCO
MCO is a token on the Crypto.com platform; a bit strange that the “.com” was added to the official name for a platform, but that’s a whole other topic.
MCO/BTC printed a fresh 2018 low of 0.000507 on November 23, 2018. At that point, the market was down by over 80% from the 2018 peak of 0.00254. While MCO/BTC may have been down big last year, it looks like it is trying to turn the corner this year. The price action over the last few days has given us the confidence to think about entering the market.
Technical analysis shows that MCO/BTC has taken out resistance of 0.0006 on December 24, 2018. This triggered the breakout from the double bottom pattern on the daily chart. The breakout sparked a rally to as high as 0.00072 on December 25.
However, the large diagonal resistance forced the market to pull back. The retracement was quickly exploited by bottom pickers as they helped establish a bullish higher low setup of 0.00056 on December 27. With a higher low in place, bulls stepped on the pedal and drove the price back above 0.0006. This enabled the MCO/BTC to finally take out the diagonal resistance and break out of the large falling wedge on the daily chart.
In addition, the technical indicators on the shorter time frames look bullish. On January 1, 2019, we saw the 100 moving average cross above the 200 moving average. With this crossover, we have the ideal alignment where the 50 MA is above the 100 MA and the 100 MA is on top of the 200 MA. This setup tells us that the market is turning bullish.
The strategy is to buy on the retest of the diagonal support as close to 0.00058 as possible. As long as this coin stays above this level, it will likely rally to our target of 0.00072.
The process may take more than a month.
Daily Chart of MCO/Bitcoin on Binance
As of this writing, the MCO/Bitcoin pair is trading at 0.000596 on Binance.
Summary of Strategy
Buy: As close to 0.00058 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.