Trade Recommendation: POA

The POA/Bitcoin pair (POA/BTC) started its uptrend on April 7, 2018 when it took out resistance if 0.00006. This activated the cup and handle reversal pattern on the daily chart. The breakout pushed the market to as high as 0.00010248 on May 10. In a month, the pair grew by 70%.

At this price level, the target of the cup and handle pattern was already achieved. This inspired those who bought the breakout to take profits. As the market succumbed to heavy selling, POA/BTC broke 0.00006 support on May 22. The pair has been bearish since but it has opened an opportunity for you to buy the bottom.

Technical analysis reveal that POA/BTC appears to respect support of 0.000034. This view comes after the pair went below the support on June 30 but bulls came to the rescue. In addition, the market is still near oversold levels. Plus, the 4-day, 8-day, and 21-day moving averages are reversing their direction. These indicators tell us that we may expect a rally soon.

The strategy is to buy as close to 0.000034 support as possible. As long as bulls stay above this level, they will attract the momentum needed to lift the market to our initial target of 0.00005. We’ll revisit the trade once the target is hit.

The entire process might take less than a month.

Daily Chart of POA/Bitcoin on Binance


As of this writing, the POA/Bitcoin pair is trading at 0.00003598 on Binance.

Summary of Strategy

Buy: As close to 0.000034 as possible.

Target: 0.00005

Stop:  0.000032

 

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.