Trade Recommendation: VeChain (VET)
Our May 14, 2019 trade recommendation for VeChain (VET/USD) hit its initial target. On May 16th, the cryptocurrency climbed as high as $0.0088175. Those who stuck to trade plan grew their investments by over 27% in just a couple of days.
The great thing about accurately mapping key support and resistance levels is that you can easily buy the support and sell the resistance. For instance, VeChain revisited support of $0.0069 and resistance of $0.0085 multiple times in a span of one month. Thus, if you followed the trade plan, again and again, you would have significantly grown your portfolio in a few weeks.
Unfortunately, VeChain breached the support today, July 11th. This means that the market’s range is taken one step down. It might be a good idea to consider buying this crypto at the next support area.
Technical analysis shows that VET/USD is headed to support of $0.0054. We have this view after the market broke below support of $0.0069. With bears controlling the midpoint of the range, we can expect VeChain to drop to our range low of $0.0054.
At that point, the cryptocurrency would likely to be oversold on the daily RSI. The expected selling relief should give the bulls space to instigate a bounce.
The strategy is to buy as close to support of $0.0054 as possible. If VET/USD bulls can keep the market from falling further, our targets for the bounce are $0.0067 and $0.008.
The process may take less than a month.
Daily Chart of VeChain/US Dollar on Bitfinex
Summary of Strategy
Buy: As close to support of $0.0054
Targets: $0.0067 and $0.008.
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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