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August 11, 2022

Equity.Guru

Investment information for the new generation

DMG Blockchain

Chart Attack: DMG Blockchain Solutions (DMGI.V) is up 98% YTD, but we are just Getting Started!

DMG Blockchain Solutions Inc (DMGI.V) is an environmentally friendly vertically integrated blockchain and cryptocurrency company that manages, operates, and develops end-to-end digital solutions to monetize the blockchain ecosystem. It operates through data centre operations, data analytics and forensics, and developing enterprise Blockchains divisions.  It is also involved in developing enterprise blockchains; and providing hosting services for industrial mining clients. The company also provides technical expertise software products, such as blockseer pool, mine manager software, and walletscore, as well as consultation services to accounting firms, law firms, and law enforcement organizations.

 

 

A few important points here to pick out. The environmentally friendly part has always been relevant, but is under more scrutiny given Elon Musk’s tweet on Bitcoin and its environmental impact. You know, the whole part of the Bitcoin network using up more energy than the entire nation of Sweden. Environmental, Social and Governance (ESG) investing is not just a trend for the future, but is playing out now. A lot of new money, and the money of the future, will look at these things before investing their money. So DMG Blockchain is ahead of the curve in this aspect.

Second thing I want to point out is the part regarding consultation with law enforcement firms. It’s not a matter of if but when regulations come to crypto. Squid game token crashing to zero was just an early sign, but if more people begin to lose life savings, the SEC will start to take action. My regular readers have read my countless Market Moment posts regarding this aspect, and why I find DeFi very intriguing. A Central Bank Digital Currency is coming, and regulations will likely be in place before they go mainstream. Because of this trend, I have been on the lookout for companies that are pretty much ready for these regulations, and offer some value to the government and other regulatory bodies. DMG Blockchain fits the bill.

Now if you have been following markets, you know that cryptocurrencies are HAWT.

TradingView Chart

Bitcoin is testing previous record highs after breaking above my flag pattern. It is likely that by the time you are reading this article, Bitcoin is already printing new record highs.

TradingView Chart

Ethereum has already printed new record highs. Lovely stuff. Bullish above $4200, and if you want to know where Ethereum goes next, then check out my Ethereum upside fibonacci targets here.

Let’s quickly take a look at a few charts that I have been mentioning over on Equity Guru’s Discord channel (join if you want to be up to date on all things markets, and some of the trade set ups I am scoping out).

TradingView Chart

We called the COIN breakout above $280. Going well for our followers and readers.

TradingView Chart

GLXY broke above my triangle pattern and followers were notified on the break above $22. New highs look likely.

TradingView Chart

MARA broke out above $56, and a typical breakout strategy applies.

TradingView Chart

RIOT is one that is on the brink of breaking out. A break and close above $40.00 and we are good to go. I can go on and on listing crypto charts and stocks, but what you need to know is that the momentum is definitely in this sector.

Please check out our crypto guru, (or do I call him our master of coin?) Joseph Morton’s deep dive on DMG Blockchain and why he loves the company. Including the recent news of the Petra platform. But as my readers know, I love the art that is technical analysis, and DMG Blockchains on the technical side, provides an enticing opportunity.

The stock is already up 98.33% year to date, but I think the bigger move is just beginning. Before we dive into the chart, I should mention the volume DMG Blockchains stock is seeing. The stock has great liquidity, seeing average volume of 1,615,722 per day. Here is recent volume, including 4,557,148 shares traded yesterday! A cool 19% day! The most volume traded since August 6th 2021.

 

Okay, enough of the suspense. Take a look at this BASED stock chart.

TradingView Chart

This is what we call an ascending triangle bullish reversal. Two very important zones. The uptrend line which confirms the upwards momentum, and then the big resistance zone above at the $1.50 zone. There was some fear when the candle briefly closed below or uptrend line. The retest happened as usual, and retests are what either confirms or breaks trends. In this case, the retest took price back above the broken trendline meaning the breakdown was a fake out. The bulls are still in control.

I mentioned the $1.50 zone above, but there is some interim resistance here at $1.25. Not a coincidence that 1.25 and 1.50 are inflection points. If we can get a close above $1.25, then the breakout of 1.50 looks even more likely. So a big day today, especially with yesterday’s 19% gain and green candle. You want to see some momentum after a day like yesterday. Bitcoin breaking out into new record highs could be the trigger!

Upside targets? I see some resistance at $2.50 and then $3.00 before retesting previous record highs. The chart is BASED, and we love to trade and ride these great set ups for the long term. Keep DMG Blockchain near the top of your watchlist!

 

 

 

 

 

 

 

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