The DOT price has been observed in a horizontal re-accumulation trading range from Jan 21, 2022 to the present. The DOT price is pushing up against the trading range resistance in what appears to be an SOS rally.
I will make a long entry in this presumed SOS rally (around $21.5) and take profit around the next resistance cluster around $28. I may add to the position at the BU/LPS.
The upper and lower boundaries of the re-accumulation trading range are given by the horizontal black lines. Blue arrows mark volume spikes.
Wyckoff abbreviations: automatic rally (AR), change of character (CHoCH), sign of weakness (SOW), failed upthrust (FUT), selling climax (SC), sign of strength (SOS), back up (BU), last point of support (LPS), last point of supply (LSPY).
This is not financial advice. I am not your financial advisor. This is my opinion.
I will make a long entry in this presumed SOS rally (around $21.5) and take profit around the next resistance cluster around $28. I may add to the position at the BU/LPS.
The upper and lower boundaries of the re-accumulation trading range are given by the horizontal black lines. Blue arrows mark volume spikes.
Wyckoff abbreviations: automatic rally (AR), change of character (CHoCH), sign of weakness (SOW), failed upthrust (FUT), selling climax (SC), sign of strength (SOS), back up (BU), last point of support (LPS), last point of supply (LSPY).
This is not financial advice. I am not your financial advisor. This is my opinion.
Comment:
For it to be a SOS rally, the DOT price needed to break the horizontal trading range resistance and remain above the resistance level for some time. It appears that the DOT price approached the horizontal trading range resistance and was rejected. Thus, the rally was an upthrust rather than a SOS rally. Note the diminished volume on the upthrust, which indicates a lack of demand. I did not take this trade as my idea was invalidated.
