Trade Recommendation: Storj
Storj/Bitcoin (STORJ/BTC) has been making some serious bullish moves. On September 19, 2018, the market broke out of a large descending channel on the daily chart with good volume. This sparked a rally to 4,695 satoshis on the same day.
As the rally faded, Storj pulled back to 3,791 satoshis and flipped the descending channel resistance into support on September 26. The successful retest launched a strong rally that triggered the break out from the inverse head and shoulders pattern on the daily chart. At this point, we can say that Storj has reversed its trend. Now, we look to buy the breakout.
Technical analysis shows that STORJ/BTC is retesting support of 4,750 satoshis. So far, bulls are defending the support and we believe that they will continue to do so.
First, RSI support of 45 RSI appears to be holding up. With this development, the RSI has managed to create a second higher low in two months.
Also, many bottom pickers and breakout traders have taken profits during the rally to 6,662 satoshis on October 31. This heavy volume rally eliminated a lot of sellers. You can see this in the declining volume after the October 31 spurt. With the market’s bullish sentiment, the limited supply might inspire another rally.
The strategy is to buy the retest of support as close as 4,750 satoshis as possible. As long as bulls keep this support, they are likely to launch a rally to our target of 7,000 satoshis.
The process may take more than a month.
Daily Chart of Storj/Bitcoin on Binance
As of this writing, the Storj/Bitcoin pair is trading at 4,845 satoshis on Binance.
Summary of Strategy
Buy: As close to 4,750 satoshis as possible.
Target: 7,000 satoshis.
Stop: 4,578 satoshis.
NOTE: a satoshi is the smallest unit of Bitcoin, which equals to 0.00000001 BTC.
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.
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