Hi friends! Let's take a look at Stellar! Well, well, well, some interesting developments have materialized! Looking at the four hour chart, we can see that XLM has slowly crept out of the falling parallel channel, and is now actually trading above the 50 EMA (in orange.) Looking at this structure, it clearly resembles many of the structures that I'm seeing on the other charts. Bitcoin, Litecoin, Ripple, Ethereum, the list goes on — so many of these cryptos are forming the exact same pattern, and it resembles a deep cup and handle. A few days ago, it looked like an oddly shaped bear flag, but now, it looks a lot more like a cup and handle formation. Some of them are even starting to breakout to the upside. XLM, however, has yet to reach the breakout level (black trendline.) So, lets do some visionary work. Typically, when traders want to find a price target, they usually measure the structure, and then add the measurement to the breakout area, to estimate a price target. When I do this sort of estimating, I like to find some support or resistance, that is somewhat close to the estimated price target. However, if there is a strong level halfway to the estimated target, I will opt for that. In this case, I think a fair target could be the top of the ascending broadening wedge (blue dashes.) However, we need to see a breakout first, and we don't have that yet. Keep in mind, that XLM could easily fall back into the falling parallel channel. So, before we go crazy with the cup and handle thing, lets print a breakout on the chart. On the MACD, we can see that it continues to expand upward, and it has just crossed the zero line, which is a short-term buy signal. In summary, the bulls appear to be gaining some ground. There appears to be a cup and handle formation on the chart, but we need to see a breakout for confirmation. We've gotten back above the falling parallel channel and the 50 EMA, but let's watch for a bit more evidence, before jumping on the bull train.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-