Is DASH over-stretched? Everyone can see that it is but fundamentally-even technically, the overall trend is bullish. All that is needed is a confirmation of that close above the upper BB and ideally that can be done if bears push prices lower below $1000 and last week’s close.
However, from a quick glance of events in the weekly chart, DASH buyers are pushing prices higher and even look to be targeting last week’s highs of $1300. If the current candlestick close as a buy with prices above the second Fibonacci extension level of $1075, then our short term bear projection towards equilibrium will be invalidated.
Of course stochastics are bearish but that doesn’t mean nothing because one, we don’t want to trade counter to the main trend and secondly, they are always lagging.
Currently, the second resistance level- assuming buyers continue to chart up as they continue banding along the upper BB- is at $1500 marked as the 3rd Fibonacci extension level.
Over in the daily chart and bears could not confirm their candlestick yesterday. Given the significance of the middle BB, this is a win for buyers especially if they continue to inch higher and align with the main trend.
Besides the stochastics which is slowly printing a buy signal, I will be watching $1300. Notice how prices failed to close or even test this level right after the accumulation from December 23. Bear pressure was definitely high and some confirmation was needed following that mini crash on December 22. It did happen but so far, bears pressure has been dismissal.
Now, one thing will almost be certain, if buyers close above $1300, DASH bulls should brace for a take off towards $1500. It’s that simple.
We have already defined our bull trigger points and in the 4HR chart it’s crystal clear that any close above $1300 will be a break out trade. Like all break outs, we shall expect a surge and a correction towards previous resistance now support which in our case will be the $1300 line.
On the flip side and assuming there is no break out, the 20 period MA and the minor support trend line connecting January 4 and December 30 lows will act as our main support lines.