(The Puffin Post) The recent Steem strength is a sign of the downtrend losing its momentum. Although the price pulled back again since its high on the 29th of August a buying opportunity could approach as the chance of a double bottom formation exits. The price is supported in the area of 0.00125 - 0.00129 BTC. Should this region hold and no new low is formed the high of the recent recovery move (working with end of day prices here) around 0.00190 BTC needs to be taken out in order to break the downtrend.
Chart was created with tradingview.com / Poloniex prices
Here is the trading opportunity I have in mind: To go long (buy) unleveraged (without a multiplication of the invested funds) once the price action signals a stronger likelihood of an upcoming uptrend by breaking over 0.00190 BTC. Risking around of 32 % of this investment by setting a stop at 0.00129 BTC (Distance from Entry: 0.00061 BTC) - as no one can predict future price movements it is a crucial to protect you funds in any investment. On the upside I do see a greater chance, as I think after an oversold period a greater buying pressure could lift Steem quickly higher. By aiming at 0.00331 BTC (Distance from Entry: 0.00141 BTC) the profit target gives around + 74 %. So the profile of risk and chance of this scenario suits me. The aimed target is 2.3 times higer than the risk.
Reward/risk profile of 2.3
- Risk: 32 % Distance from Entry: 0.00061 BTC
- Potential reward: + 74 % Distance from Entry: 0.00141 BTC
- 0.00141/0.00061 = 2.3
Risk Disclaimer: Any of the opinions, researches, analyses and other information in this article are provided as a market commentary and are not to be seen an investment advice. Please be aware of all the risks associated with trading cryptocurrencies, your investment objectives and your personal risk appetite.
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