Trade Recommendation: Status

Our December 30, 2018 trade recommendation for Status/Bitcoin (SNT/BTC) reached both targets. If you bought near our buy zone of 0.00000422 and sold when the market climbed higher than our second target of 0.00000622 on January 16, you would have grown your investments by around 50% in less than a month.

Now, Status may have overshot our second target. However, the market did not have the strength to stay above 0.00000622 for long. It eventually retraced and gave up most of its gains. This tells us that the market is still in range accumulation. Fortunately, Status is offering us the chance to long the possible higher low.

Technical analysis shows that Status is respecting key support of 0.0000048. The market relied on this price area to launch a bullish offensive to resistance of 0.00000742. We believe that it will hold for the following reasons.

First, the selloff over the last few days looks pretty weak. Volume was thin and this leads us to believe that the support will hold. Without heavy volume, bears will likely have a lot of trouble breaking this support.

In addition, the daily RSI is near oversold territory. With the expected selling relief that often comes with oversold conditions, Status will most likely bounce. We’re seeing that happen right now as the daily candle prints a wick below the body. This tells us that buyers are absorbing the dip close to the support.

The strategy is to buy as close to 0.0000048 as possible. As long as bulls stay above this level, Status will likely rally to our targets of 0.0000064 and 0.00000742.

The process may take less than a month.

Daily Chart of Status/Bitcoin on Binance

As of this writing, the Status/Bitcoin pair is trading at 0.0000049 on Binance.

Summary of Strategy

Buy: As close to 0.0000048 as possible.

Targets: 0.0000064 and 0.00000742.

Stop: 0.00000457

 

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.