EBON to $10?! Cryptocurrency Mining and Exchange Trade 🚀

EBON is a crypto/telecommunication play. They are best known for their ASIC chip design and manufacture and selling of Bitcoin mining machines. They are receiving extra attention this past few weeks due to them completing chip designing for simultaneous Litecoin ( LTCUSD ) and Dogecoin ( DOGEUSD ) mining. ”In the future, we will focus on developing more mainstream cryptocurrency mining machines, and we are considering designing more mining chips compatible with multiple cryptocurrencies. We believe it will help increase our revenue from the cryptocurrency mining business and optimize our product offering structure along the blockchain industry value chain.". Right now the crypto market is rallying extremely hard and I think EBON’s status in this market will only increase as crypto receives more and more investments from strong financial powers. EBON is also launching its own cryptocurrency exchange in the first quarter of 2021. They have completed the internal testing of the exchange already.
EBON seems to be establishing an international foothold/platform from which to grow. EBON has a subsidiary in Singapore(8/13/20), Australia (10/22/20) and Canada to improve its industrial layout and upgrade its digital asses financial service platform (9/28/20).
**Many of these subsidiaries still will have to receive the regulatory approvals and licenses and does not mean EBON will be able to execute their proposed business as planned**

Offerings: EBON has offered shares, warrants, and units multiple times this year to raise capital and the stock price has taken a hit each time. Most recently the unit offering resulted in a quick sell off but EBON rallied hard the next day. It seems that this most recent offering included institutional investors to the tune of 14mln units which is very interesting.

Chart:
Looking at the chart you can notice a 20% sell off from 2/9-2/11 as EBON announced a public offering of up to 16 mln units at $5 per unit. EBON plans to increase to a maximum of 19.2 man units. EBON entered into purchase agreements with institutional investors that agreed to purchase ~14 mln units at initial closing. What I like about this news is the next day we had a 17% rally to test the daily 100 SMA where we were rejected. I think the crypto market being as strong as it is right now is bringing added attention to EBON and we could be on the brink of breaking out of the huge Daily Triangle pattern. $7 is a big resistance lvl that I will be watching closely this week. If we can break and close above on the Daily chart I think we can trigger a bigger rally back to $10.
I do think that if this break it will be in the pre-market action this tuesday morning 2/16)

Plan: Add shares on $7 breakout if volume confirms. This would get the price over SMA resistances and out of the Value area on the Daily chart.
Target: short-term would be 7.70-8.30 range for some profit taking and then riding shares to $10 lvl.
Stop: If entering $7 break I would have a stop at $6.75-6.8 lvls.
Alternative Plan: if $7 fails I think EBON will test $5.8-$6 HVN seen on the daily and 12h chart. I think this is a good spot to pickup shares for a longer hold play.

*With EBON having the crypto mining advancements and crypto exchange news I think it has a strong possibility of rallying back to the highs if the market allows. I do not currently have any positions in this sector and think this is a great add to the portfolio. SPY had a strong Friday close after looking weak wed/thurs so I will keep an eye on it and I will not be entering big if the market is in a questionable state.

Comment:

Big gap up this morning which I expected. Wish I entered last week. Initiated a starter position at $7.83. Let's see where EBON heads this week. Will look for more dips to increase position.

Comment:

EBON tested a high of $8.50 during the first hour of open then lost all momentum and sold off to test the $7 support. EBON was strong pre-market as was BTC at that time but then after 10am just weakness. I want to see a close outside of the triangle pattern to set up retests of $8-10 this week. From my write-up I think EBON has the potential for a solid Swing play. Be on the lookout for news about its crypto mining or mentions of its crypto currency exchange (first quarter of 2021). Keep an eye on how BTC/Crypto is performing since EBON is directly in that sector we can have sympathy movement.

Comment:

EBON is rallying with BTC right now as BTC closes in on $50K again. Image above shows strong resistance zone that is also the edge of the closes HVN. If we can get through that zone hello $10! We ended up closing the day at $7.88 after re-testing the $7 lvl and holding nicely. I am still in shares at avg of $7.70. HUGE volume today of 45million shares, lets see what that brings the rest of the week.

Comment:

EBON had a similar chart to BTC yesterday from 11am-4pm. Now it's made a monster move in after-hours trading while BTC is sitting at 51400 right now.
I may trim some shares to lock in profit here

Trade active:

EBON had $11.24 this morning 😦insane move! I closed 75% of my shares and will ride the rest. EBON has a lot of development coming in the way of crypto between their international mining business and release of their crypto exchange this quarter.
I am watching for EBON to find support and some consolidation after the past few days of monster moves and will look to average up some shares.

Trade active:

EBON hit $12+ in After hours trading and then sold off to $10's. It needs some cooling off time after that explosive run. Will be watching to see where it finds bottom.

Trade active:

Hit $13.70 today, what a strong move. I sold some more shares at $13.50. What a huge move by EBON. I am going to hold my remaining shares until EBON announces news about their cryptocurrency exchange and see if we can retest $15 then!

Comment:

Big failure today on EBON as well as most the market. EBON specifically looks to be pulling back with BTC's big sell off. BTC ended up bouncing back to 54k and is currently at 52k. I'd like to see EBON form a base above $7.7-$8 lvl. If it can find some support I'd like to average up some shares.