Trade Recommendation: Modum
Our November 24, 2018 trade recommendation of Modum (MOD/BTC) hit its target on November 29 when the market went as high as 0.0001174. If you locked in gains at that price, your investments would have grown by over 35%. If you left a percentage of your investments to chase the next target, it would have increased by over 59% on December 7 from the original buy price.
Profits came fast and easy for Modum because the market structure is fairly predictable. We’ll take advantage of it as much as we can.
Technical analysis shows that MOD/BTC is still trading within a range. Recent price action has enabled us to better define this range. The bottom end of the range is 0.00008, the midpoint is 0.0001075, and the top is 0.0001354. Everything that has happened outside of this range since late July 2018 can be considered as a deviation.
When it comes to markets that are trading sideways, it is key to stay patient. Modum is currently correcting after briefly touching the range high. It even retested the range midpoint as a resistance on December 8. As long as Modum trades below the midpoint, the likelihood of revisiting the range low is high. Thus, set your bids and wait for the market to drop to 0.00008.
The strategy is to buy as close to 0.00008 as possible. If MOD/BTC continues to defend this support, then we can expect the market to once again move up to the range midpoint of 0.0001075. We suggest taking gains and closing most of your positions once the initial target is hit. Leave the rest for the possible run-up to the range high of 0.0001354
The process may take less than a month.
Daily Chart of Modum/Bitcoin on Binance
As of this writing, the Modum/Bitcoin pair is trading at 0.00094 on Binance.
Summary of Strategy
Buy: As close to 0.0008 as possible.
Targets: 0.0001075 and 0.0001354.
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.