Trade Recommendation: TRON
Our December 25, 2018 trade recommendation for TRON (TRX/USD) was on the money. The recommendation hit its mark on January 7, 2019 when the market climbed as high as $0.02462. Those who followed the trade recommendation grew their investments by over 25% in less than two weeks.
Although TRON overshot our target, there was no reason for us to chase the hype. After all, it was starting to show signs of bullish exhaustion. The daily candle on January 10 had a long wick above its body, indicating massive selling pressure. In addition, TRON was trading in overbought territory.
We wanted to see technical indicators cool down and show signs of stability before reentering the market. It appears we’re getting those signals now.
Technical analysis shows that TRON is headed to our new range low of $0.023. This view comes after the market respected and retested resistance of $0.029. The price action tells us that the market is still under heavy selling pressure. This profit-taking will likely drive TRON down to $0.023.
Our new range low of $0.023 is very likely to hold. That’s because we can see the 50-day MA and the 200-day MA crawling around that level. More importantly, the 50-day MA is about to move above the 200-day MA. This golden cross is a signal that TRON may be turning bullish.
The strategy is to buy as close to $0.023 as possible. As long as TRON trades above this level, it will likely rally to our range midpoint of $0.029. Take that out and the next target is $0.035.
The process may take less than a month.
Daily Chart of TRON/US Dollar on Bitfinex
As of this writing, the TRX/US Dollar pair is trading at $0.02655 on Bitfinex.
Summary of Strategy
Buy: As close to $0.023 as possible.
Targets: $0.029 and $0.035.
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.