Technical Analysis - Constellation
DAG/BTC - 02/25/2020
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As shown above, we will be updating the technical analysis of DAG/BTC from the 21st of January 2020.
DAG has retraced from its strong parabolic uptrend to a previous area of resistance. From there on, we are seeing quite strong movement upwards without indecision. This could be a start of the continuation of the uptrend or the beginning of a more significant reversal structure.
As mentioned above, DAG has re-tested previous resistance as support, which is quite bullish in itself. By doing this, it has also made a higher low on an HTF level, which usually is indicative of the strength and interest of buyers in the asset. Following the MKAST Algorithm, it has turned into a buy-condition right after the S/R flip, ending the quite strong downtrend. Looking at previous buy-conditions, those can last for quite a while, and as long as DAG has no significant breakdown, it will most likely stay in the buy condition. The TJ-Index is uptrending strongly, giving confirmation to the slightly bullish bias of DAG/BTC.
Nevertheless, technical analysis would be worthless without exploring the countering side. In this case, it is the possibility of DAG/BTC setting up for a significant head and shoulders pattern while currently printing the right shoulder. The neckline would be the red uptrend line, which could be confirmed broken after a clean close below the green box. There is a reasonable chance of a healthy retrace back to the green box and/or the red line. An experienced trader would look for entries, though it has to be treated with caution because of the above mention reasons.
This Technical Analysis is made by Kong Trading. The provided Analysis should not be considered financial advice!