Trade Recommendation: TRON

Our March 21, 2018 trade recommendation for TRON/Bitcoin (TRX/BTC) hit its mark on April 24 when the market reached 0.000008. Those who followed the trade recommendation grew their investments by 100% in a month.

While we were expecting the pair to range trade, it overshot our target and climbed to 0.00001 resistance on April 30. As 0.00001 is also the 50% Fibonacci level, this is where bottom pickers started to take profits. The selling pressure drove the pair down to 0.00000721 on May 12. Coincidentally, this price point is also the 38.2% Fibonacci level.

What’s interesting about this pullback is that the volume has been anemic. This tells us that many of those who bought at 0.000004 are holding their positions. This is bullish for the pair as reluctance to sell constricts market supply. Under these conditions, we can bottom pick TRX/BTC.

Technical analysis show that TRON/Bitcoin is creating a cup and handle reversal pattern. This comes after the pair posted a higher low setup at the 38.2% Fibonacci level. The shallow correction from the rally suggests that participants are buying on dips. That’s what we’ll do as well.

The strategy is to buy as close to 0.0000076 as possible. As long as bulls hold the higher low, they have all the momentum they need to take out resistance of 0.00001 and ignite an uptrend. This may take us to our target of 0.000016.

The process can take less than a month.

Daily Chart of TRON/Bitcoin on Binance

As of this writing, the TRON/Bitcoin pair is trading at 0.0000082 on Binance.

Summary of Strategy

Buy: As close to 0.0000076 as possible.

Target: 0.000016

Stop: 0.00000721


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, 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.