Trade Recommendation: DASH
Our April 8, 2018 recommendation for the Dash/US Dollar pair (DASH/USD) hit its target on April 23 when it closed above $500. Those who followed the trade idea grew their investments by over 66% in about two weeks.
While we expected DASH to range trade and repair its technical damage, its ability to stay above $400 indicates strength. Yesterday, May 9, it went as low as $411.003 but bottom fishers began to enter the market. As a result, the pair closed at $442.2 and created a hammer candlestick which could be a signal bar. It shows the presence of buyers below $440. The rally today is a strong indication that DASH has generated a bullish higher low.
However, it is very difficult to bottom pick the market. That is why many people prefer to buy the breakout or follow the trend. We’ll do the same for this cryptocurrency.
Technical analysis show that Dash/US Dollar is now in the process of an ABC corrective wave after completing a five wave down. The assumed higher low of $411.003 appears to be the B-wave. If that’s the case, the C-wave up should take the market above $533 resistance.
Moreover, breach of this resistance level should also trigger the cup and handle reversal pattern on the daily chart. We have a confluence of bullish patterns here giving us strong arguments to bet on the market.
The strategy is to buy the breakout at $533 as long as the pair prints volume of 3,000 DASH units. Those who bought the higher low might take profits at the resistance. The market needs buyers to absorb the selling pressure.
Once breakout is complete, the market may explode to our target of $781. The process may take a month.
Daily Chart of DASH/USD on Kraken
As of this writing, the Dash/US Dollar pair is trading at $455.093 on Kraken.
Summary of Strategy
Buy: Breakout of $533 after the market generates volume of 3,000 DASH units.
Stop: $500 after the breakout.
Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.