Dolomite/Turkish Lira Market Overview

Summary
• Price surged from 2.751 to 2.92 during the session, forming a bullish impulse with strong volume.
• RSI reached overbought territory, suggesting potential short-term reversal risk.
• Volatility spiked during mid-session, with a large 15-min candle indicating institutional activity.

Dolomite/Turkish Lira (DOLOTRY) opened at 2.751 on 2025-11-05 12:00 ET-1 and closed at 2.79 on 2025-11-06 12:00 ET, with a high of 2.92 and a low of 2.748. The 24-hour volume was 11,192,166.6 and the notional turnover reached $30,174,397. The session saw a sharp midday rally, followed by a consolidation phase that ended with a modest pullback near the opening level.

Structure & Formations

DOLOTRY exhibited a clear bullish impulse during the early evening hours on 2025-11-05, forming a strong upward thrust toward the 2.92 level. A bearish reversal pattern followed with a large bearish candle (time: 2025-1106 05:4500) that confirmed distribution at the top. Key support levels now appear at 2.85 and 2.80, with 2.748 serving as a critical stop-loss level. A bullish engulfing pattern emerged early in the session, followed by a bearish counterpart at the peak, signaling potential exhaustion and a possible near-term correction.

Moving Averages

On the 15-min chart, the 20-period and 50-period moving averages crossed to the upside early in the session, reinforcing the bullish bias. On the daily chart, the price closed above both the 50 and 200-period moving averages, indicating a possible medium-term trend reversal to the upside. However, the closing pullback raises questions about the sustainability of the momentum.

MACD & RSI

The MACD crossed above the signal line in the morning and maintained a bullish divergence through mid-session, before diverging negatively in the latter half. RSI reached an overbought level of 78, signaling a potential short-term top. While the momentum remains strong, the narrowing MACD histogram and bearish RSI divergence suggest a high likelihood of near-term consolidation or pullback.

Bollinger Bands

Price action saw significant expansion of the Bollinger Bands during the upward move, with the asset closing near the upper band, a classic overbought signal. A contraction phase followed in the late hours, indicating a possible reversal setup. The current price appears to be consolidating within a tighter band, suggesting a probable breakout or breakdown in the next 24 hours.

Volume & Turnover

Volume surged during the midday rally, reaching over 1.3 million in a single 15-min candle. This indicates aggressive buying at higher levels. Turnover and volume aligned well during the bullish phase but diverged in the consolidation phase, where volume remained elevated despite a declining price. This suggests continued interest despite short-term profit-taking.

Fibonacci Retracements

Fibonacci retracement levels from the 2.748 to 2.92 move show 2.84 at the 61.8% level and 2.80 at the 50% level. These are likely to act as immediate support levels in a pullback. A test of the 38.2% retracement at 2.87 may confirm or reject the strength of the consolidation phase. A break below 2.80 could bring in deeper support at the 2.748 level.

Backtest Hypothesis

A backtest could be designed to test the effectiveness of a bullish Engulfing candle strategy on DOLOTRY, using the 2.85 level as the target exit point. A practical backtest would require confirmation of the exact ticker symbol used and clarification on the exit rule. If the exit is defined as the first close ≥ 2.85, this would create a clear and measurable trade signal. The large bullish Engulfing pattern observed during the session aligns with the strategy’s criteria, making it a viable candidate for testing. Historical performance of this setup could be evaluated by backtesting the strategy from 2022-01-01 to today.