What a ride it has been for DASH. From the chart, buyers who got in Q1 2017 have increased their fortunes more than 200 times. That is impressive and while we understand that there is nothing that goes to the moon forever, we can still hope for future entries for those who missed the train.
Looking at the weekly chart, we cannot miss the multi-resistance break above in the last 5 weeks or so. In my opinion, last week was important and even though technical indicators can sometimes be misleading especially when fundamentals takes the upper hand, that whole candlestick that closed above the upper BB as an inverted hammer told it all. Look at the follow through this week.
Sellers are stepping on the gas pedal as they bid to restore equilibrium and there is only one way that can be done. Selling until the middle BB is tested. By the way, let’s not forget the stochastic sell signal.
There is no short cut to that and that is why in the lower time frames, it will be wise to sell. You can as well step aside and wait for better entries in the coming weeks or even months. That is in fact a patient and wise strategy.
The same script applies in the daily chart and while the sell signal in the weekly chart is overt, the over-extension in the daily chart is clear for everyone to see.
I expect lower lows just like it is and this to me is just the beginning. Any breach below the middle BB will be important for sellers and for better entries we shall zoom in to the 4HR chart.
For fine tuning entries, I pasted a Fibonacci retracement between last week’s high low and walaah! Check out the reversal from the 61.8% level complete with a stochastic sell signal turning from the overbought territory. That could be a better time to short.
If you want to trade this pair with a really tight stop, then wait maybe for a retest of the middle BB since today candlestick looks over-stretched and well above the Average Daily Range (ADR).