Trade Recommendation: TRON
The TRON/US Dollar (TRX/USD) pair has been in a downtrend since it failed to take out resistance of $0.085 on May 6, 2018. This showed market participants that the pair was not yet ready to launch a major bull run. As a result, investors dumped positions to either cut their losses or preserve gains.
TRX/USD has been in a downtrend for over two months now. However, long-term investors shouldn’t lose sleep because a reversal appears to be in sight.
Technical analysis show that Tron/US Dollar is very likely to bottom out at support of $0.03. We have several reasons to support this view.
First, $0.03 is the market’s strongest support. Bulls have successfully defended this level since February 2018. More importantly, TRX/USD has always bounced whenever it hit the support. This is an area where demand exceeds supply.
Second, TRX/USD is creating a falling wedge pattern. At $0.03, the pair would be at the narrowest point of the wedge. By then, an explosion would be inevitable. We believe the explosion would have a bullish bias considering that demand is very likely to be high at $0.03.
Lastly, both the daily RSI and MACD are flashing bullish divergence signals. This indicates that the market is gaining strength.
The strategy is to buy as close to $0.03 as possible. If the market can stay above this level, bulls will likely inspire a rally to our initial target of $0.05. Take that out and the market has an easier path to $0.06.
The process may take more than a month.
Daily Chart of TRX/USD on Bitfinex
As of this writing, the TRX/USD pair is trading at $0.0356 on Bitfinex.
Summary of Strategy
Buy: As close to $0.03 as possible.
Target: $0.05 and then $0.06.
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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