Our May 17, 2019 trade recommendation for TRON (TRX/USD) hit its target. On June 2, 2019, the market climbed as high as $0.040839. Those who stuck to trade plan grew their investments by over 45% in about two weeks.
Fortunately, TRON quickly retraced after hitting our price target. This gives us the chance to buy the swing low and position for the next leg up.
Technical analysis shows that TRON has broken out of an inverse head-and-shoulders pattern on the weekly chart when it took out resistance of $0.028 on May 26, 2019. The breakout marks the end of TRON’s year-long bear market. From hereon, the cryptocurrency is in a technical uptrend.
With this sentiment, TRON is a buy on dips candidate. What we want to see is for the market to successfully flip the former resistance of $0.028 into support and build a new base around that price level. On the daily time frame, the 50-day moving average and the 100-day moving average are gliding close to that support. They will act as additional supports that will help keep the price from falling further.
The strategy is to be patient and buy on dips as close to $0.028 as possible. As long as TRON is above this level, it will target our current range high of $0.044.
The process may take less than a month.Weekly Chart of TRON/US Dollar on BitfinexAs of this writing, the TRX/US Dollar pair is trading at $0.033418 on Bitfinex.Summary of Strategy
Buy: Breakout and retest at $0.028.Target: $0.044Stop: $0.0268
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.