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 , allowing it to act as a dynamic support. Price trading above the is perceived ; breaking below considered .
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 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?
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Published at Wed, 01 Jul 2020 01:19:31 +0000