DGBBTC | Ascending Triangle | Apex | Resistance Cluster
Todays Analysis – DGBBTC – Trading within a multi-month ascending triangle, nearing its apex as support and resistance converge.
Points to consider:
- Resistance cluster
- Higher lows - apex
- 200 EMA – visual guide
- Low volume
- RSI above 50 – higher low projection
- Stochastics overbought
DGBBTC unable to break and hold above daily resistance after multiple failed attempts over a multi-month period indicates a strong resistance cluster.
Price action has been forming a higher low projection as it convergence into daily resistance. A break in either direction is imminent as price coils into its apex.
DGB respecting the 200 EMA, allowing it to act as a dynamic support. Price trading above the EMA is perceived bullish; breaking below considered bearish.
Volume has been declining and remaining below average. Historically, an inflow of volume has coincided with bullish price action, indicative of an influx being probable at the retest of daily resistance.
RSI breaking above 50, trading in a higher low projection indicating increasing strength in the market. Stochastics are overextended, although they may remain there for some time, momentum has been stored to the downside.
Overall, in my opinion, further price development will determine a directional bias.
An S/R flip re-test of daily resistance with volume follow through validates a conservative entry for a long trade with technical target of structural resistance. However, breaking below trend support, price will likely retrace to structural support.
What are your thoughts?
If you’ve read this far - thank you for following my work!
And as always,
Focus on you, and the money will too!
Points to consider:
- Resistance cluster
- Higher lows - apex
- 200 EMA – visual guide
- Low volume
- RSI above 50 – higher low projection
- Stochastics overbought
DGBBTC unable to break and hold above daily resistance after multiple failed attempts over a multi-month period indicates a strong resistance cluster.
Price action has been forming a higher low projection as it convergence into daily resistance. A break in either direction is imminent as price coils into its apex.
DGB respecting the 200 EMA, allowing it to act as a dynamic support. Price trading above the EMA is perceived bullish; breaking below considered bearish.
Volume has been declining and remaining below average. Historically, an inflow of volume has coincided with bullish price action, indicative of an influx being probable at the retest of daily resistance.
RSI breaking above 50, trading in a higher low projection indicating increasing strength in the market. Stochastics are overextended, although they may remain there for some time, momentum has been stored to the downside.
Overall, in my opinion, further price development will determine a directional bias.
An S/R flip re-test of daily resistance with volume follow through validates a conservative entry for a long trade with technical target of structural resistance. However, breaking below trend support, price will likely retrace to structural support.
What are your thoughts?
If you’ve read this far - thank you for following my work!
And as always,
Focus on you, and the money will too!
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