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Dolphin Entertainment Rallies Following NFT Partnership: Technical Levels To Watch

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Tyler Bundy
·2 min read
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Dolphin Entertainment Inc. (NASDAQ: DLPN) shares were trading higher following news late Tuesday of a partnership with Hall of Fame Resort & Entertainment Co. (NASDAQ: HOFV) to make non-fungible tokens.

dlpn5min3-24-21.png
dlpn5min3-24-21.png

Dolphin Ent. Short Term Chart Analysis: Shares of Dolphin Ent ran Tuesday during the after-hours session from $18 to $38, as shown on the 5-minute chart above.

The $18 level held as resistance at the end of the day before the price was able to break above. This is an area that may now hold as support because old resistance may become new support after a break.

The stock ran to a high of $38 after hours, but on multiple occasions was unable to break above the $36 level. This area may now become resistance on the chart.

The stock is trading above the 200-day moving average (blue) and below the volume-weighted average price (pink), indicating the stock is consolidating and may continue until one of the indicators is broken.

Until then, the 200-day moving average may hold as a potential support and the volume-weighted average price may hold as a potential resistance.

What's Next: Bulls would like to see the stock build up to the resistance level before breaking above. If the price is able to cross above the resistance level, it will need to consolidate some before the price may move higher.

Bears would like to see the price move lower and fall through the support level. If the price is able to fall below the support level and consolidate, the price may be able to make a further downward move.

With such a rapid upward price move, checking the daily chart technicals is a guessing game. The company hasn't had such a partnership before making finding the bottom more difficult. Traders may want to wait for a day where the stock corrects before entering into the stock long term.

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