DASHUSD dominated by bears dragging the market lower throughout the day
Dash/US Dollar Index (DASHUSD) Technical Analysis Report for Nov 22, 2020 | by Techniquant Editorial Team
DASHUSD finished Sunday at 90.36 losing $4.06 (-4.3%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (DASHUSD as at Nov 22, 2020):
Sunday's trading range has been $6.06 (6.42%), that's slightly above the last trading month's daily average range of $5.68. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DASHUSD.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on November 15th, DASHUSD actually gained 7.73% on the following trading day.
Prices are trading close to the key technical support level at 88.05 (S1). Prices are trading close to the key technical resistance level at 94.67 (R1). After having been unable to move above 94.53 in the previous session, Dash ran into sellers again around the same price level today, missing to move higher than 94.42.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 75.51.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the nearby swing high at 94.53 where further buy stops might get activated. As prices are trading close to November's high at 94.67, upside momentum could speed up should DASH/USD mark new highs for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed below the upper Bollinger Band" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for DASH/USD. Out of 88 times, DASHUSD closed higher 56.82% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 62.50% with an average market move of 18.31%.