Hello, traders!
Today I want to share my thoughts on the XLM / USD pair.
Stellar has seen a huge growth in recent weeks. This occurred due to XLM breaking out positively from a descending wedge formation with a bullish trend before. The descending wedge had multiple verification points of contact. As can be seen, this descending wedge had a positive breakout. The downwards resistance line then proceeded to act as support for the breakout, confirming that it had occurred. How long will this last? Is XLM close to running out of steam?
Normally, we would begin with the Ichimoku cloud. However looking at historical XLM data against the Ichimoku we found it to be highly inaccurate, so will, therefore, start with the KC (Keltner Channels). The KCs are currently looking bullish, with the top level of the KC providing support. This, therefore, indicates that the current trend is very strong.
Due to the continued support, it also indicates that this upwards movement is very unlikely to be a simple pump. Alongside the KCs we also have the BBs width, this is useful for indicating volatility and the continued progress of a move.
As we can see with the indicator BBW (Bollinger Band Width) it is beginning to plateau. This indicates that the aggressive move upwards is beginning to slow down, however, does not indicate that the move is over. Another indicator which is pointing towards further bullish movement, although a slowdown in the BSM (Bollinger bands MACD). The shift from the red area towards the green is a reversal sign / bullish. All the time the indicator is green, it suggests that further bullish movement is in store.
I would suggest Stellar reach 0.115 USD in the next couple of days - what do you think?
Good luck trading!
Today I want to share my thoughts on the XLM / USD pair.
Stellar has seen a huge growth in recent weeks. This occurred due to XLM breaking out positively from a descending wedge formation with a bullish trend before. The descending wedge had multiple verification points of contact. As can be seen, this descending wedge had a positive breakout. The downwards resistance line then proceeded to act as support for the breakout, confirming that it had occurred. How long will this last? Is XLM close to running out of steam?
Normally, we would begin with the Ichimoku cloud. However looking at historical XLM data against the Ichimoku we found it to be highly inaccurate, so will, therefore, start with the KC (Keltner Channels). The KCs are currently looking bullish, with the top level of the KC providing support. This, therefore, indicates that the current trend is very strong.
Due to the continued support, it also indicates that this upwards movement is very unlikely to be a simple pump. Alongside the KCs we also have the BBs width, this is useful for indicating volatility and the continued progress of a move.
As we can see with the indicator BBW (Bollinger Band Width) it is beginning to plateau. This indicates that the aggressive move upwards is beginning to slow down, however, does not indicate that the move is over. Another indicator which is pointing towards further bullish movement, although a slowdown in the BSM (Bollinger bands MACD). The shift from the red area towards the green is a reversal sign / bullish. All the time the indicator is green, it suggests that further bullish movement is in store.
I would suggest Stellar reach 0.115 USD in the next couple of days - what do you think?
Good luck trading!