Trade Recommendation: WaBi/Ethereum
The WaBi/Ethereum pair (WABI/ETH) ignited its bull run on December 31, 2017 when it breached resistance of 0.0025. The momentum of the breakout was so strong that it went as high as 0.004398 on January 10, 2018. In less than two weeks, the market grew by over 75%. That was enough for breakout players to take profits.
As the market succumbed to sellers, it plunged to as low as 0.00205001 on January 16. While the pair bounced, it could only go as high as 0.00362495. With a lower high in place, participants started dumping positions which caused the market to break below critical support of 0.0025. This move triggered a bearish head and shoulders pattern.
Technical analysis show that WaBi/Ethereum has reached the target of the head and shoulders pattern when it went as low as 0.00016572 on March 10. Bulls rushed in to stabilize the market and bring it back up to support of 0.0013. The price action created a long wick under the daily candle’s body which indicates the presence of buyers at 0.0013.
The strategy is to buy as close to 0.0013 support as possible. If the market respects this level, it will likely create a base while range trading to our target of 0.0025. The process may take more than a month.
Daily Chart of WaBi/Ethereum on Binance
As of this writing, the WaBi/Ethereum pair is trading at 0.00139943 on Binance.
Summary of Strategy
Buy: As close to 0.0013 as possible.
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.