DASH (DASH/USD) AnalysisNovember 2, 2017

DASH continue to roll around during the session on Wednesday, as we have been consolidating for some time, because of this, it makes sense to employ a range bound strategy under these conditions. On the chart, I have attached the Stochastic Oscillator under normal conditions. Now that we have seen a bit of a crossover on the 4-hour chart down at the 20 level of the oscillator, it looks as if the coinciding support at $260 should offer a buying opportunity. $300 above continues to be resistive, but short-term traders can take advantage of this range bound trading. I would also point out that we are starting to see a little bit of a “higher low”, so that is bullish as well. Nonetheless, I am not looking for a major move here, just a simple buying opportunity for the short term.

The case for more consolidation

Quite frankly, the US dollar has been reasonably quiet over the last several sessions, and that is half of the equation here. With the stochastics looking so reliable, I believe that it is a nice opportunity just waiting to happen, for short-term traders. If we were to break out, then that of course changes everything but right now it looks as if the market continues to feel quite content in this area.

The alternate scenario

The alternate scenario of course is that we do continue to go lower. If we break down below the $260 level, I think that we could probably go down to the $250 level underneath. At the $250 level, it’s likely that we will continue to see a lot of support, and perhaps a lot of pressure. Otherwise, we could break above the $300 level, and if we do it’s likely that clearing the $310 level will have longer-term traders buying as it would be a break of significant resistance.