Stellar Lumens Price Analysis: Bullish Opportunity on the Horizo
Conclusion for today's Stellar Lumens price analysis:A break above the long term trendline can be used as part of a conservative strategy to go long (i.e. buy) Stellar Lumens.
A log scale of Stellar Lumens price is presented on the 6 hour timeframe with coverage of market action since May 2019.
The long term bearish trendline is plotted on the chart with peak of the price spike on September 18, 2019 used as the second pivot in drawing the trendline. The 200 and 50 moving averages are also drawn to track price for possible trend change(s).
Signs of hesitation for the downtrend as shown on the chart include the formation of a double bottom (ideally bullish) chart pattern between September 6 and September 14, 2019. Confirmation of the pattern occurred on September 17, 2019 when price broke and closed above ~0.00000597.
A retracement to the aforementioned price level i.e. ~0.00000597 can be observed after the price spike, suggesting that Stellar lumens’ price could potentially find support at the price level. A second test would provide additional evidence of bullish momentum picking up and hence change in the trend from bearish to bullish.
The September 24, 2019 bullish crossover (50 moving average above the 200) also does favor a bullish scenario for Stellar Lumens as opposed to the continuation of the long term bearish trend.Confirmation of support at ~0.00000597 (second successful test) provides a great risk/reward ratio for long (buy) positions.
More conservative strategies for initiating long positions however involve waiting for price to close above the long term bearish trendline.Price closing below ~0.00000563 presents a great challenge for the continuation of price action to the upside, therefore invalidating the bullish analysis for Stellar Lumens.
A log scale of Stellar Lumens price is presented on the 6 hour timeframe with coverage of market action since May 2019.
The long term bearish trendline is plotted on the chart with peak of the price spike on September 18, 2019 used as the second pivot in drawing the trendline. The 200 and 50 moving averages are also drawn to track price for possible trend change(s).
Signs of hesitation for the downtrend as shown on the chart include the formation of a double bottom (ideally bullish) chart pattern between September 6 and September 14, 2019. Confirmation of the pattern occurred on September 17, 2019 when price broke and closed above ~0.00000597.
A retracement to the aforementioned price level i.e. ~0.00000597 can be observed after the price spike, suggesting that Stellar lumens’ price could potentially find support at the price level. A second test would provide additional evidence of bullish momentum picking up and hence change in the trend from bearish to bullish.
The September 24, 2019 bullish crossover (50 moving average above the 200) also does favor a bullish scenario for Stellar Lumens as opposed to the continuation of the long term bearish trend.Confirmation of support at ~0.00000597 (second successful test) provides a great risk/reward ratio for long (buy) positions.
More conservative strategies for initiating long positions however involve waiting for price to close above the long term bearish trendline.Price closing below ~0.00000563 presents a great challenge for the continuation of price action to the upside, therefore invalidating the bullish analysis for Stellar Lumens.
