Trade Recommendation: Monero
Our trading system is simple. We plot the current range and identify three levels: support, resistance, and midpoint. We buy low and sell high by buying the support and selling the resistance. However, there are times when the midpoint is also a good buy level. Whenever we do that, we’re convinced that the market is about to break out of the range and trend higher. That’s what we’re seeing in Monero (XMR/BTC).
Technical analysis shows that XMR/BTC is threatening to take out resistance of 0.014. This view comes after the market broke out of a descending triangle pattern on the 12-hour chart on February 8, 2019. The breakout triggered a rally that sent Monero close to our range high of 0.014 on February 13.
At that point, Monero was in overbought territory on the 12-hour chart. This inspired those who bought the bottom to take profits. As a result, the market is currently pulling back. Nevertheless, this retracement is giving us the chance to go long on the market.
The strategy is to buy at the current level of our range midpoint of 0.013. As long as Monero trades above this level, bulls will likely gather the momentum to finally take out our range high of 0.014.
Once the resistance is breached, it will trigger the breakout from a double pattern on the 12-hour chart. A breakout will likely send the market to our target of 0.016.
The process may take less than a month.
Daily Chart of Monero/Bitcoin on Binance
As of this writing, the Monero/Bitcoin pair is trading at 0.013 on Binance.
Summary of Strategy
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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