Trade Recommendation: Dash
Our April 5, 2019 trade recommendation for Dash (DASH/USD) hit its initial target. On May 19th, the market climbed as high as $177.25. Those who stuck to the trading plan grew their investments by over 65% in about a month and a half.
Now, the second target of $185 still applies but Dash is starting to show signs of bullish exhaustion. It is currently trading near overbought conditions. Also, the last three daily candles have been red. These are signals that tell us that the market is correcting. We’ll use this to our advantage by buying the dip.
Technical analysis shows that DASH/USD has broken out of a large cup and handle pattern on the daily chart when it took out resistance of $135 on May 14th. This triggered a breakout rally that drove Dash to $177.25 on May 19th.
As mentioned, the breakout rally is fading. We’ll try to catch the market at the breakout point when it is likely to convert the previous resistance into support. $135 is very likely to hold because there are three supports converging at that level. The horizontal support, the diagonal support, and the 50-day moving average acting as support.
Therefore, the strategy is to be patient and buy as close to $135 as possible. If bulls defend $135, the targets to look for are $185 and $225.
The process may take a month.
Daily Chart of Dash/US Dollar on Bitfinex
Summary of Strategy
Buy: As close to $135 as possible.
Targets: $185 and $225.
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.
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