The #Dash has broken out of the wedge yesterday, adding to the overall bearishness of the coin. The coin broke the wedge to the downside and then closed significantly below it. However, the #Dash stopped at 0.03430 level, that represents a significant support level that provided support to the coin in its recent history as well. Now that we trade outside of the wedge, we should have a more clear picture on what is ahead of us.
On the 4H chart, the #Dash created a bullish engulfing candlestick pattern. In general, this pattern suggests the bulls have taken control of the price action movement from the bears. This type of pattern usually accompanies a declining trend, suggesting a low or a short-term end has occurred.
So, the break out of the wedge is bearish but the engulfing candle has provided some light at the end of the tunnel for the bulls. Hence, we believe that given the recent bearishness in the coin, we are leaning towards a bounce in the Dash, especially as the coin has reacted really well from the horizontal support. The RSI is also pointing towards a bounce. An additional bonus is the fact that we are sitting at the support, hence the R:R in the long trade at these levels is very good.
LONG
Entry: Current market price - 0.034540
Stop: 0.033200
Target 1: 0.036200
Target 2: 0.038000
Target 3: 0.039700
On the 4H chart, the #Dash created a bullish engulfing candlestick pattern. In general, this pattern suggests the bulls have taken control of the price action movement from the bears. This type of pattern usually accompanies a declining trend, suggesting a low or a short-term end has occurred.
So, the break out of the wedge is bearish but the engulfing candle has provided some light at the end of the tunnel for the bulls. Hence, we believe that given the recent bearishness in the coin, we are leaning towards a bounce in the Dash, especially as the coin has reacted really well from the horizontal support. The RSI is also pointing towards a bounce. An additional bonus is the fact that we are sitting at the support, hence the R:R in the long trade at these levels is very good.
LONG
Entry: Current market price - 0.034540
Stop: 0.033200
Target 1: 0.036200
Target 2: 0.038000
Target 3: 0.039700