DLNG: Bullish Setup with Multiple ConfluencesI see several compelling reasons to be bullish on DLNG:
Breakout of Long-Term Consolidation:
The stock has decisively broken out of a multi-month consolidation zone around $4.22. It has since retested this level, confirming it as support. This breakout suggests that momentum is shifting in favor of the bulls.
Liquidity Gap to Target:
There is a clear liquidity gap on the chart, providing a smooth path for price movement from the current levels to $8.00. Such gaps often act as magnets for price action, increasing the likelihood of upward continuation.
Moving Averages Alignment:
The stock is trading above key moving averages (e.g., 50-day and 200-day), a classic signal of bullish momentum. Additionally, the moving averages are likely forming a "golden cross" pattern (if applicable), which strengthens the bullish outlook.
Volume Confirmation:
Recent price movement has been accompanied by increasing volume, adding credibility to the breakout. Higher volume on breakouts often indicates institutional interest and a higher probability of sustained price movement.
RSI and Momentum Indicators:
Momentum indicators like RSI are likely in bullish territory but not yet overbought, leaving room for further upside.
Key Levels to Watch:
Support: $4.22 (previous breakout level)
Resistance: $8.00 (liquidity gap target)
Please, do your own research!
