Trade Recommendation: Basic Attention Token

Our March 31, 2019 trade recommendation for Basic Attention Token (BAT/USD) hit both targets. Those who stuck to the trading plan grew their investments by almost 70% when the market skyrocketed to as high as $0.434 on April 20th.

BAT/USD overshot both of our targets but we weren’t worried. By the time it hit $0.493 on April 21st, the market was overextended. It showed a large bearish divergence on the daily RSI. On top of that, the daily candle on April 21st had a long wick on top of its body. This was a clear signal that holders were taking heavy profits.

As expected, BAT/USD corrected. This now gives us a chance to buy the dip.

Technical analysis shows that BAT/USD is generating a large falling wedge on the daily chart. A falling wedge is a continuation pattern. It suggests that Basic Attention Token will very likely resume its uptrend once the correction is over.

The falling wedge appears to have its apex at support of $0.30. By the time BAT/USD hits that level, it will likely be oversold on the daily RSI. The expected selling relief due to oversold conditions plus high demand at a support area is a proven formula for a bounce in most cases.

The strategy is to buy on dips as close to $0.30 as possible. As long as BAT/USD is above this level, it will likely rally to our target of $0.49.

The process may take less than a month.

Daily Chart of Basic Attention Token/US Dollar on Bittrex

As of this writing, the Basic Attention Token/US Dollar pair is trading at $0.349 on Bittrex.

Summary of Strategy

Buy: As close to $0.30 as possible.

Target: $0.49

Stop: $0.285

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.

Comments are closed.