DASH (DASH/USD) Analysis February 10, 2018
Technically, bears are still be in charge and after all, all these higher highs relative to last week’s overwhelmingly bearish candlestick might be another selling opportunity.
Well, it may or may not be. Now, if we factor in the breach and consequent retest of August highs early this week, then we shall have a different perspective of price action.
First, if DASH prices appreciate and close above $660-which in our case is the 1st Fibonacci extension level (a significant line in that regard), then it means prices are back above the middle BB and bulls may begin picking buy opportunities in lower time frames.
In line with that then we can conclude that not only did prices recover from the middle BB but the main support line at around $425 acted as a perfect spring board for the third wave of a potential bull breakout pattern-trend resumption.
All these by the way are not outliers but real possibilities under our considerations if DASH valuation inch up by $100 or less.
Price action in the daily chart is even interesting and with stochastics in the picture, it’s not hard to see that nice recovery of DASH prices. Anyway, a buy signal has been printed deep in the oversold territory and that is important.
However, from my point of view, yesterday was especially important and even though February 7 candlestick didn’t confirm the double bottom, chances are prices might close above the 78.6% Fibonacci retracement and the main support line at $515.
One thing-and a positive one in that case, is the reaction of DASH prices at August highs and the consequent recovery.
See that double bar reversal pattern which formed the foundation of this pump and close above the main resistance line? That line shall complement the middle BB and be our immediate support zone. I recommend averaging out and small position entries with targets at $900.