A Dime a DOGE?Looking at DOGE daily chart with BOLL BANDS, 200MA & S/R defined. The chart shows from Nov '22 but the colored lines date back to as far as Feb '22.
So in technical analysis we don't consider what comes next for the DOGE icon on twitter. Nor do we wonder what the Musk wildcard might do. He could make it so you have to pay for blue in DOGE only, but from a TA perspective we can't think about that too much. That all being said let's look at the chart.
Doge has been trading between $.05 - $.10 since May of 2022. The spike in Nov '22 retraced back into that channel and proved to be legless. Notice the five punctures of the upper BOLL band that astute traders would have loaded their shorts into. On a daily chart, rapid successive punctures of a wide, expanding upper BOLL band are never good news.
Well, lo and behold we have rapid, successive punctures of a wide, expanding upper band on the past three daily candles. It's easy to think a retraction is coming over the next week. Now the good news is that the 200MA is finding strength within the middle of the bands, which should prove to be a strong support. This should come around $.083.
The anticipated bounce off the 200MA will setup for the next battle at a dime. Ten cents is a relatively new price point to consider, with most of Doge's trading history well below that level. Given the recent rejection on April 3, I don't expect it to be an easy target; but if the challenge comes on sustained green volume it could be overtaken.
I do think Doge will eventually pass a dime, with the next major resistance at $.158. This price point hammered down wicks in Feb, Apr, and Nov of last year. The first dance with the yellow line will be a great short opportunity.
Should things ever go terribly wrong, longing a bounce off the black line should be a great op. Enjoy, NFA.
