Trade Recommendation: Simple Token/Ethereum

The Simple Token/Ethereum (OST/ETH) pair has been bearishly trading almost all year. From a high of 0.001169 on January 11, 2018, OST/ETH nosedived to as low as 0.00009844 on August 5. That’s a loss of over 91.50% in eight months.

However, recent price action shows that Simple Token/Ethereum is coming back to life.

Technical analysis show that Simple Token/Ethereum has broken out of a large falling wedge pattern on the daily chart. In addition, yesterday’s record-breaking volume catalyzed the breakout. OST/ETH generated 1,344.91% of its average daily volume. The volume buzz pushed the pair to as high as 0.00034 on August 7.

OST/ETH is currently correcting from yesterday’s rally. Nevertheless, the price action was a signal that bulls have shown up in droves.

The strategy is to buy the breakout as close to 0.00012 as possible. A successful backtest of the support clears OST/ETH for takeoff. Initial target is 0.000238.

The process can take less than one month.

Daily Chart of Simple Token/Ethereum on Binance

As of this writing, the Simple Token/Ethereum pair is trading at 0.00013262 on Binance.

Summary of Strategy

Buy: As close to 0.00012 as possible.

Target: 0.000238

Stop:  0.0001

 

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.

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