Our February 1, 2019 trade recommendation for TRON (TRX/USD) hit its initial target. Those who followed our trade recommendation grew their investments by over 34% on April 7th when the market climbed as high as $0.029837.
Now, the second target for the February 1st trade recommendation is still on. However, the crypto markets are starting to look bullish. This is why we have to be agile and capitalize on new signals. Right now, we are seeing positive developments on TRON’s chart despite the recent dip.
Technical analysis shows that TRON is poised to take out resistance of $0.0275. A breach of this level will trigger the break out from an inverse head and shoulders pattern on the weekly chart. This means that TRON would be in bull territory on the longer timeframe once it goes above $0.0275.
Although the market was trading above that level earlier today, we suggest erring to the side of caution because the weekly candle has a long wick on top of its body. This suggests the emergence of sellers. Wait for TRON to stabilize above the support before placing buy orders.
The strategy is to wait for the breakout at $0.0275. Fortunately, the 50 moving average on the weekly chart is gliding close to this level. The technical indicator will act as additional support to help keep the market above the neckline.
As long as TRON goes above $0.0275, it will likely rally to our target of $0.04.
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 $0.02307 on Bitfinex.
Summary of Strategy
Buy: Breakout and retest at $0.0275.
Stop: $0.0263 after the breakout
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.