It’s been a relative calm since the June DAO hack.
Today we will look at an 8-hour chart of DAO. As many here will be aware, it has been relatively lackluster ever since events of last June.
There are two distinctly obvious ways to draw a bear setup on this chart. It is very hard, maybe impossible, to know which of the setups is the “best” one. There are many clues, but in the end, the fractal nature of the market makes any reasonable Gann setup work, at least for a while. Having said that, let’s look at this setup:
We can see ample indications that the market respects the setup, as indicated by the arrows. I won’t bother pointing out the significance of each of the highlighted points in pricetime. If readers have been following my column for the past week, it is likely already a bit obvious why these points are highlighted in the chart.
The truly interesting thing about this chart/setup is that price has been virtually super-glued to the top of the square for months now. But, more importantly, we are now just a day or so from hitting 5th arc support. Will the support hold, and provide a springboard for higher prices? I can’t know for certain yet, but it seems rather likely. We will know quite soon in any case.
Let’s look at a bull setup from the June low for another view:
I left the textbox from the first setup on the chart. Because…. Here, amazingly enough, we see that the bull setup is ALSO just a day away from 5th arc resistance. It’s almost identical in timing to the bear setup we looked at above. So, it seems rather likely that DAO will begin a new chapter (of some sort) in the very near future. My guess is that a buying opportunity beckons, but we will know better in the very near future, once we see how price reacts to the arcs it is about to hit.
Remember: The author is a trader who is subject to all manner of error in judgement. Do your own research, and be prepared to take full responsibility for your own trades.
Image from Shutterstock.