IOTUSD has two recent tests of the Monthly Pivot Range high, one on the last day of last month’s Monthly Pivot Range and another on the third day into the new Monthly Pivot Range. This is significant as both attempts failed on 2 different levels and within close proximity. My gut tells me there is strong impetus to test a third time before a subsequent breakout or strong failure followed by a swift selloff.
This is reason for us to be cautious yet optimistic that if we can close above the Monthly Pivot Range high, this would be confirmation of a breakout to the long side.
The Daily Pivot Moving Average has turned upward (14 day to 30 day: red, yellow) and is looking likely it will achieve a bullish crossover. Be mindful of the swing low low as this is key support, that if broken, would confirm a continuation of the bearish trend.
This is a longer term trade with which we can be conservatively patient and wait until the price closes above the Monthly Pivot Range before entering long. If the market unfolds with this scenario, then the setup will be a very good risk reward trade.
The action to take is to buy when the price closes above the Monthly Pivot Range high level and place the stop loss below the Monthly Pivot Range low. Place the profit targets as stated.
Entry Price: 2.0200
Stop Loss: 1.8300
Profit Targets: First profit target 2.6000. Second profit target 3.3500. Once price reaches first profit target bring the stop loss to breakeven (entry price). Then as price moves higher trail a stop loss .3500 points back until 2nd profit target is reached or stopped out.
Disclaimer: The writer owns Litecoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
