Trade Recommendation: NULS/ETH

The Nuls/Ethereum pair (NULS/ETH) launched its bull run on January 3, 2018 when it breached resistance of 0.003. The price action triggered the double bottom reversal pattern on the daily chart. In addition, the breakout attracted so much momentum that the market became parabolic. The pair’s supercharged velocity catapulted it to as high as 0.00688654 in January 7. In four days, the pair grew by almost 130%.

At this point, the pair was in extreme overbought territory. Breakout traders used it as a signal to take profits. The selling pressure drove the market down to 0.002388 on January 16. In a little over a week, that market lost all of its gains from the parabolic run.

The plummet attracted bottom fishers, which lifted the pair to as high as 0.00581839 on January 18. Sensing that a lower high was in place, the market resumed its drop until it bottomed out at 0.00231342 on February 6. NULS/ETH has been rallying since. This could be your chance to ride the next bull run.

Technical analysis show that NULS/ETH is in a good position to take out resistance of 0.006 after creating a bullish higher low setup at 0.0044 on May 7. The breakout appears very likely as two patterns are emerging. One is a cup and handle reversal pattern and another is an ascending triangle pattern. We have two bullish patterns merging at 0.006.

The strategy is to buy the breakout at 0.006 as long as the pair prints volume of 500,000 Nuls units. Those who bought the higher low might take profits at the resistance. The market needs buyers to absorb the selling pressure.

Once breakout is complete, NULS/ETH will likely breach 0.0067 resistance first and may explode to our target of 0.009. The process may take a month.

Daily Chart of NULS/ETH on Binance

As of this writing, the Nuls/Ethereum pair is trading at 0.00567123 on Binance.

Summary of Strategy

Buy: Breakout of 0.006 after the market generates volume of 500,000 Nuls units.

Target: 0.009

Stop: 0.0055 after breakout.

 

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.