Stellar Tries to Bust Through The Roof! (XLM)

Hi friends! Let's take a look a Stellar! Looking at the four hour chart, we can see that XLM remains above the falling downtrend channel, as it tests substantial overhead resistance. You can see that several resistance levels are converging in the same general area. You have the 200 EMA (in purple,) and the 50 EMA (in orange,) and the 50% retrace. If the bulls can manage to get above those levels, it would open up a clear shot to the bottom of the 38.2% retrace, around 0.615. The MACD is as flat, and volume is practically nonexistent, as most traders ignore XLM. The breakout above the falling parallel channel has been extremely weak, producing slightly downward overall price action — not what bulls want to see on a breakout. On the downside, support may continue to be found at the top of the falling parallel channel. However, if XLM reenters that zone, there should be a clear shot down to the bottom of the ascending broadening wedge (blue dashes.) I'd like to draw your attention to the "huge failed breakout," that occurred on the top of this pattern. To me, it's very interesting because, technically, ascending broadening wedges are bearish patterns, which normally produce a breakdown below the bottom trendline. The failed breakout, suggests that the buyers got ahead of themselves, and the wedge remains the dominant technical pattern. As I'm typing this, I can see that XLM is moving up to test the bottom of the 50 EMA. What it does there, will be critical in determining forward price movement. Overall, XLM is still in a downtrend, forming lower highs and lower lows.

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***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***

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-JD-