Trade Recommendation: Theta Token

Our January 24, 2019 trade recommendation for Theta Token (THETA/BTC) hit both targets. If you followed the plan and bought on dips, you would have grown your investment by 55% as of February 6th when the market climbed as high as 0.0000217.

We expected Theta Token to spend more time trading below resistance of 0.000022. After all, the resistance was only tapped twice during range accumulation. However, the market was extremely bullish. It took out 0.000022 on February 10th and retested it on February 19th. When the support held, bulls launched a monster rally that saw Theta Token skyrocket to 0.00005229 on April 10th.

Even though we missed this rally, we shouldn’t fret because Theta Token is giving us a chance to buy at a high demand area.

Technical analysis shows that THETA/BTC is respecting support of 0.000022. This view comes after bulls defended this area multiple times between April 1st and April 12th. During this period, bears tried to push the market down below the support but bulls held their ground. This is a good sign that buyers are absorbing the selling pressure.

In addition, technical indicators are flashing bullish signals. The daily RSI has reset as it is close to oversold territory. On top of that, volume remains thin. This indicates that there are only a handful of sellers dumping at current levels.

The strategy is to buy on dips as close to 0.000022 as possible. As long as Theta Token stays above this level, it will likely rally to our target of 0.000037.   

The process may take less than a month.

Daily Chart of Theta Token/Bitcoin on Binance

As of this writing, the Theta Token/Bitcoin pair is trading at 0.00002418 on Binance.

Summary of Strategy

Buy: As close to 0.000022 as possible.

Target: 0.000037

Stop: 0.000021

 

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.