Trade Recommendation: Moeda Loyalty Points
Moeda Loyalty Points (MDA/BTC) is having an awesome 2018 Q4. From the low of 0.00005938 on October 5, 2018, it skyrocketed to as high as 0.00043297 on October 14. That’s an increase of 629% in less than two weeks.
At that price, the market showed signs of bullish exhaustion. It was extremely overbought on the daily chart. On top of that, the daily candle printed a long wick above the body to indicate the presence of sellers. These signals warned of a significant correction. That’s exactly what happened.
The good news is that it appears that the corrective period is about to be over soon. This presents us with an opportunity to bottom pick the market before it makes a big move.
Technical analysis shows that MDA/BTC is creating a large bull pennant on the daily chart. This pattern indicates bullish continuation. So far, it appears that the pennant is in the latter stages of consolidation. If our read is correct, MDA/BTC should rally once it hits the diagonal support to mark the end of the E-wave.
In addition, technical indicators support our bullish outlook. First we have the 50 MA, 100 MA, and 200 MA crawling below the daily candles. These moving averages act as support that can help the market resume its uptrend. Also, the daily RSI has cooled off from overbought conditions. This gives MDA/BTC a lot of room to move up without overheating.
The strategy is to buy on dips as close to the diagonal support of 0.0002 as possible. As long as bulls defend this level, MDA/BTC will likely inspire a break out from the bullish pennant and take the market to our target of 0.00035.
The process may take less than a month.
Daily Chart of Moeda Loyalty Points/Bitcoin on Binance
As of this writing, the Moeda Loyalty Points/Bitcoin pair is trading at 0.000208 on Binance.
Summary of Strategy
Buy: As close to 0.0002 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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