Trade Recommendation: Nebulas
The bulls of Nebulas (NAS/BTC) are flexing their muscles. After four months of accumulation below 0.000195, the market finally breached this resistance on March 11, 2019. This triggered the breakout from the rounding bottom pattern on the daily chart.
Also, the breakout looks really strong as Nebulas generated the largest daily volume ever on March 11. The surge in demand catapulted the market to as high as 0.000258. More importantly, the dramatic volume uptick is a sign that Nebulas has become bullish. This is why we’re interested in going long on the market.
Technical analysis shows that NAS/BTC is creating a bull flag on the daily chart. This bull flag is a strong indicator that the market will likely resume its uptrend once sellers lose ammunition. The market’s declining volume over the last several days supports this view. The decrease in volume is a sign that sellers at current levels are dwindling.
In addition, bulls have managed to flip resistance of 0.000195 into support. The support is even stronger now considering that the 200-day moving average is crawling around it. Thus, a dip to this level will likely attract bottom pickers and bargain hunters.
The strategy is to buy as close to 0.000195 as possible. If bulls can stay above this level, they will likely generate a rally to our targets of 0.000258 and 0.00031.
The process may take less a month.
Daily Chart of Nebulas/Bitcoin on Binance
As of this writing, the Nebulas/Bitcoin pair is trading at 0.000216 on Binance.
Summary of Strategy
Buy: As close to 0.000195 as possible.
Targets: 0.000258 and 0.00031.
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.