Trade Recommendation: Neoscoin

It didn’t take long for the Neoscoin/Bitcoin to go bearish after generating an all time high of 0.00312035 on June 30, 2017. The trend reversal was confirmed when the market broke the 0.002 support level on July 8. The pair plunged from one lower low after another. It took the market four months to find some resemblance of stability.

Neoscoin/Bitcoin established support at 0.0003 on November 2 and consolidated at that level for over a month. On December 29, the market suddenly surged and closed above 0.0012. However, the market was extremely overbought. Those who bought at 0.0003 took the chance to dump their positions, causing a significant pullback. Nevertheless, the recent pullback is bullish as the market created a new higher low at 0.00073.

Technical analysis show that the market is well on its way to a trend reversal. The pullback is key as it allowed a fresh batch of investors to enter the market. These new investors will most likely sell their positions above 0.0012. This increases the likelihood that the next attempt to breach that resistance level will be successful.

The strategy is to buy at the current market level. The pair is out of overbought territory so it has a lot of room for its next move up.

Daily Chart of Neoscoin/Bitcoin on Poloniex

As of this writing, the Neoscoin/Bitcoin pair is trading at 0.00098800 on Poloniex.

 

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.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.