Hi friends! I hope you're all doing well today. Let's take a look at Stellar! If you recall from my last XLM post, I showed you the XLM beakout and subsequent failure into the ascending broadening wedge (blue dashes.) We can see that at one point, price rallied significantly out of the broadening wedge, and the falling parallel channel (pink dots.) However, it turned right back around to close back inside of the two patterns, forming a shooting star-like candle (shooting star.) This is a sign of weakness, showing that the sellers have quickly suppressed the buyers, when the bulls attempted a breakout. At the moment, you can see that XLM is holding onto the 50 EMA (in orange) for dear life, as it moves closer and closer into the apex of trendlines. Overall, the bears appear to have an edge over the bulls, as they've been able to turn the last two breakout attempts into failures. However, we can see that there is another possibility. It is possible that a new uptrend channel has formed (in green.) You can see how XLM is being squeezed by all of these different trendlines at the moment. It's being compressed, and coiled, into a tiny area. This increases the likelihood of some explosive movement, when it finally does break. Nothing is guaranteed, it's just more likely. There is a nice amount of open white space, above and below, at the moment too. On the upside, overhead resistance exists from 70-79 cents. Downside support lies at the 50% retracement level, around 50 cents. Below that, support will likely be found at the 200 EMA (in purple.) From here, we will have to see which direction this thing breaks. This has been your fearless kung-fu chart master, MPC. Much love to the fans and the haters.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-