Time for Dash, which was previously mentioned on the 20th of July. Here, we can see a very important principle of the Price Action trading approach – you wait for the price to show you the direction with either a bounce or a breakout. Back in that day Dash was drawing a bullish reversal pattern but for the proper buy signal we were still missing one important detail:
“Currently, Dash is having a triple bottom formation and today, the price broke the resistance of this pattern (black). Price closing a day above this area will be a strong buy signal. On the other hand, rejection should drive the price much lower. „
The price did not manage to close above that resistance (black). Failed opportunity was an occasion to go in the opposite direction – down. At the beginning of August, Dash broke the horizontal support on the 210 USD (blue), which was a direct signal to go short. Currently, we are around 150 USD and it seems that traders are getting ready to a bigger bullish correction. The sentiment is still negative in the long-term but in the next few days, we may be experiencing a small pull-back. Do not get overly optimistic though, for us, it is just a dead cat bounce.