********* TRADING ALERT *********
The market has overcorrected.
Everyone has been dumping like hell thinking they're going to make a tidy profit buying back in at 5. However as I explained on Sunday, the valuation is much more elastic now.
We can see this in the 1 hour chart. The selling momentum went 1-2-3-2-1 and now it's level. i.e. the dump came in 5 successive waves increasing in intensity and then decreasing. The 1 hour chart has now gone level or slightly crossed to the upside.
MARKET DEPTH
The market depth is in full buy-back configuration. Massive asymmetry in favour of the bid side indicates that traders still expect the valuation to recede further but bargain hunters have gathered in numbers with jaws on the floor and tongues hanging out. If you've dumped and are waiting to get back in your going to be in good company. The more the price drops the less liquidity there's going to be:
The 4 hour hour chart is still in full kamikaze mode, but the next bar may indicate a revised trajectory given that selling has all but stopped for the moment and the 1 hour went horizontal. There's a full 17000 DRK to plough through just to get back to 6 and even if that goes off order book it may only be because the market sees us bottoming out. A possible retest of 5.5 may be on the cards at some point but it's equally possible that 6 is the new base.
