Trade Recommendation: VeChain
VeChain (VET/USD) is a market that has given us a clearly defined range. It all started on March 12, 2019 when VeChain breached resistance of $0.0053. This triggered the breakout from an Adam and Eve double bottom on the daily chart. The breakout sparked a strong rally that sent VET//USD to as high as $0.008539 on the same day.
While the market immediately pulled back and even dipped below $0.0053 on March 13th, bulls quickly recovered the support. They even managed to start another rally that sent VeChain to $0.0082012. At that point, VeChain was already showing bullish exhaustion, which is why the current correction is not surprising. However, this dip offers us a chance to buy close to the range support.
Technical analysis shows that VET/USD is enroute to support of $0.0053. We have this view as VeChain lost control of our range midpoint of $0.0069. Below this level, the next reliable support is the range low of $0.0053.
The good news is that the 100-day moving average (MA) is crawling around that level. It will act as an additional support to help keep VET/USD above the range low. Also, bulls had to tap $0.0053 as resistance three times before taking it out on March 12th. Now that the market is above $0.0053, we can expect bulls to defend it with all their strength.
The strategy is to buy on dips as close to $0.0053 as possible. As long as VET/USD trades above this level, it will likely rally to our initial target of $0.0069. Take that out and the next target is $0.0085.
The process may take less than a month.
Daily Chart of VeChain/US Dollar on Bitfinex
As of this writing, the VeChain/US Dollar pair is trading at $0.006147 on Bitfinex.
Summary of Strategy
Buy: As close to $0.0053 as possible.
Targets: $0.0069 and $0.0085.
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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