Lumen XLM/BTC As you've requested! Please see Analysis below.
A few follower’s have asked me to look at this chart, If you want me to do analysis on any chart, just follow me and let us know.
There are three features on this chart that stand out to me, they all carry the same meaning to be.
Firstly we haven’t had a close above or below the January 3rd bar, since January third. This tells me we are in a box, and you never trend trade in a box. While the box (Blue rectangle) is the entire range the Black line shows a top only broken once and suggests another resistance level and a tighter range that is also in play.
The second thing is the fall away in volume since late November. The lack of volume also suggests indecision in either the direction, people wanting to be involved in the coin or the coin is waiting on specific news.
Price is overextended away from the 200ema. Price has stayed close to its Emas and after the early Jan buying the distance between EMA and price has stretched. I think price is likely to go sideways while the ema is drawn up and closer, or even put in a little spike down to hit the 200 ema. The over extension from the ema takes away any interest in a long trade from the top of the box.
Eventually I do expect the coin to Break out long as its entered the range from the bottom and is above the 50 and 200 ema.
If price hits the bottom of the Blue box, I am happy to trade it back up to the blackline. That’s the only trade I would take inside the Blue box.
Eventually the EMA will draw closer to price, and then if volume lifts and price breaks out above the blue box, and then comes back and touches the top of the blue box, I would trade it long. But to confirm for that too happen I need the 200EMA (Green line) closer to price, volume to build and the perfect ABC pattern.
Always remember if you want to make dollars your decisions need to make sense. There are just better charts to watch than this one unless you have a piece of fundamental news that I don’t. I will keep a lose eye on it for bottom of the box trade, but if I missed it I wouldn’t be worried.
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Comment:
This chart continues to range as we predicted
Comment:
Yawn, time for a nap..we continue to wait
Comment:
We have now seen time break below the 50 EMA and the range and head towards recent lows. We see a good buying opportunity set up here in the ext few days