CONY: A Very Speculative Buy w/ Chart Pattern w/Bitcoin&CoinbaseFundamentals:
CONY is a covered call strategy. If bitcoin collapses again, the CONY will go bust. It could turn into a dividend trap. It is highly speculative. However, if bitcoin propels forward or goes sideways, then these two scenarios will be best for CONY.
Technicals:
Plan: To trade CONY buy observing health signals from bitcoin (BTCUSD).
Theory: Reading the tape is the same as identifying chart patterns with transaction volume.
BTCUSD is retesting its all time highs and consolidating.
BTCUSD has given two buy signals after re-testing all time highs: two morning stars on the daily chart.
BTCUSD daily uHd with extreme buy indicator.
Note: CONY today has issued a dividend of $2.7944 per share today; hence, the drop in the chart on CONY. Meanwhile, bitcoin has given a buy signal today. It is worth the risk.
Here is a daily chart of bitcoin with the buy signal:
CONY, itself, is within the 23.8% - 38% buy zone area of a large cup-with-handle pattern, after a minor successful cup-with-handle pattern within it that appear in February 2024.
If bitcoin does not collapse, then this could be the beginning of "wave b" or "wave 2" and end of minor 4th wave.
Comment:
I speculate that CONY will reach around $38 buy July or August 2024. The plan is to re-invest dividends along the way. I am treating the money invested as though all of it is gone, for now.
