Stellar Looking Good for a Quick Short

Its been a long, long time since we’ve had the chance to look at $XLM. So, we’re going to take the time to do so now:


In the above chart, we’re in the H4 resolution.

However, before we cover what’s going on in that picture, here’s another one of the same chart resolution with a little more detail added for insight:


In the picture above, we can see:

1. Mini-downtrend resistance that’s just above where the price is now. RSI(14) is already overbought after a ridiculous surge in the past few periods. There’s a chance that exhaustion could be reached with the bulls on this coin, which would lead to a consolidation.

2. The RSI(14) is a big deal. The reason why is included in my annotations for XLM’s RSI on the H4 resolution.

Let’s look at some support and resistance points on this time frame as well:


In the picture above, the two dotted green lines represent two major points of support and resistance.

There is a third, slightly less potent, overhead resistance that must be accounted for as well:


Again, this is the H4 resolution for $XLM (Stellar Lumens) using the Binance Exchange as the source for price data (its the most reliable and where the most volume for $XLM is at).

Putting All of This Together

In my opinion, just the information that we have here is enough for us to come to a conclusion on the position that we want to enter here on $XLM.

My idea here for $XLM is to enter into a short position (temporarily). For those that are subscribed to the Patreon, I’ll explain what my longer term strategy for this coin would be moving forward from this point.

Here is my R/R on the trade: