- Dash is up 2% on the day but significant hindrance exists at $200.
- The contracting triangle resistance is the key to a spike above $200 and eventually $210.
Dash corrected higher towards the end of last week after the bounce from the double bottom pattern. Nevertheless, the trading over the weekend was quite uneventful especially with the downside limited below $100. The 38.2% Fib retracement level with the last swing high of $206.75 and a swing low of $171.02, on the other hand, strongly supported the price limiting any movements towards $184.
There is a contracting triangle approaching a breakout in the medium-term. Dash retraced higher on Monday and approached $200. However, the momentum stalled on marginally below $200 leading to the ongoing bearish connection. Fortunately, the bulls have found balance above $192 and are pushing for a retest of $200 in the near-term.
Dash must break out of the contracting triangle resistance for a spike above $200 to occur. Consequently, a support above $200 will be instrumental to ensuring that higher levels towards $210 and $220 are achieved. On the downside, if the trendline support is broken, a further breakdown is likely to test $172 (recent lows) but first, the 50SMA (hourly chart) will offer support at $190.99. The MACD is in the positive region, which means that the buyers still have the moment, although the stochastic is retreating from the overbought.
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