Hi traders, I hope you're all having a good start to your weekend.
Here I am analyzing Stellar/Bitcoin on the 1D chart.
Price recently had an impulse leg, and a small correction, and has now continued to the upside (See chart for details). I am expecting if that price breaks the resistance zone, that price will go to the highs.
There is a few scenarios for this trade and how it could play out. These are below:
Price corrects within the resistance zone (the zone it is in now) retests the downside side-wards support level at 0.0000056, and then rallies again creating the up move.
Price breaks the resistance without a correction. After breaking the resistance zone completely, then it corrects and retests the resistance zone as a new support zone before price moves to our target of 0.00001239.
Price stalls at resistance zone and price corrects and remains under the resistance level. We would be looking to other trades if this scenario occurs.
Bare in mind that price needs to either correct or break resistance zone before there is an active trade. With this in mind, do be sure to enter this trade only when one of the 2 scenarios has happened.
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Comment
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Price has began a corrective move to the downside after stalling in the resistance zone (See above trading scenarios section for details.
When looking at the 4H chart, we can see price has weakened at the highs, and cannot seem to break the level. I suspect there will be a correction to support zone structure (Around 0.00000650 level) before we get the upside move.
Let's keep our eye on this one for more developments.