Trade Recommendation: WINGS
WINGS (WINGS/Bitcoin) bounced off lows of 0.00001702 on September 12, 2018. At that price level, the market lost over 90% of its value from last year’s peak of 0.00018. Nevertheless, the heavy losses inspired bottom pickers and bargain hunters to come together and start a buying frenzy. This ignited a strong rally that enabled WINGS to take out the top end of the range of 0.00003088 and climb as high as 0.00004173 on November 7.
At that point, WINGS needed to flip 0.00003088 resistance into support in order to trend higher. Unfortunately, bears reclaimed the resistance as market participants took advantage of the rally to lock in gains. This sparked a selling activity that saw WINGS drop to our range low. The good news is this allows us to bottom pick the market.
Technical analysis shows that WINGS/BTC is trading sideways. This view comes after the market respected our range low of 0.0000184. With bulls successfully defending the support, we now have a double bottom pattern on the daily chart. This tells us that a durable low is in.
In addition, the drop to the bottom end of the range has given technical indicators the time they need to cool off. The daily RSI is far from overbought territory. Also, we can see how volume significantly declined ever since WINGS tapped the range high. This tells us that the market’s sentiment is shifting from profit-taking to base-building.
The strategy is to buy as close to 0.0000184 support as possible. As long as WINGS/BTC stays above this level, it will likely gather the momentum to rally to our target of 0.00002458. Take that out and the next target is 0.00003088.
The process may take a month.
Daily Chart of WINGS/Bitcoin on Binance
As of this writing, the WINGS/Bitcoin pair is trading at 0.00002004 on Binance.
Summary of Strategy
Buy: As close to 0.0000184 as possible.
Targets: 0.00002458 and 0.00003088.
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.