In my view, I really think bear pressure is fizzling out after last week’s DASH mega fall. That is what buyers want to see but more importantly though was the retest that happened. If you did notice, bears tested the main equalizer and that is key.
So, the game plan as the week comes to an end? Well, the first thing that we should be watching is the size of the lower wick viz a viz last week’s and if prices do close below or above the first Fibonacci extension line at $650.
For DASH buyers to be in charge, there need to be a surge and close above this week’s highs of $870. Pointers are supportive of buys and it looks likely that they might close above it especially if price action continue to reject lower lows or any price tag bordering the middle BB and main support.
What’s interesting in this timeframe is the positive reaction of prices at the 61.8% Fibonacci retracement level and the probable completion of a double bottoms.
Notice that buyers are injecting the much needed momentum right from support and following through from the double bar bull reversals which was completed on January 15-16. Even though the follow through was strong, prices didn’t close above the middle BB and instead trickled down but the amazing thing is that there is no time when prices closed below $755.
Since yesterday was bullish and confirmed the 3-bar reversal pattern or the Morning Star that begun on January 22, I’m recommending long entries in lower time frames.
There is one single bull trigger line that buyers need to breach before we can conclude intermittent buy pressure: the minor resistance trend line connecting January week 1, 2 and 3 highs.
I must say, when prices got past the middle BB on January 24, buyers were buoyed and even though they are still above that line, this consolidation may provide the necessary Bars to jerk prices above $850 and probably 930.
Otherwise, if bears find the current level suitable for sells and drive back prices below $720, this short term bullish view will be invalidated.