Today’s Analysis – XLMUSDT – breaking its neckline resistance, a retest will allow for a long entry with defined risk.
Points to consider,
- Trend (higher lows)
- Macros resistance breached ( Neckline)
- 21 MA support (visual guide)
- Oscillators overextended
- Strong influx
- Neckline retest (long entry)
XLMUSDT’s immediate trend is by establishing consecutive higher lows, a higher high has been confirmed by breaking neckline resistance.
A retest of the neckline will confirm structural S/R Flip, solidifying the level and allowing for a risk defined entry.
The 21 MA is immediate support; this can be used as a visual guide for trend continuation.
Oscillators are both in overextended regions; a retest of the neckline will direct them back to neutral territory.
influx has been significant on the break of the neckline resistance. This indicates a true break of the level, continuation is highly probable.
Overall, in my opinion, a long trade is valid with defined risk; an optimal entry will be at the neck line retest.
The 21 MA is to be used as a visual guide for the trade.
What are your thoughts?
Please leave a like and comment,
“Trade the market in front of you, not the one you want!” – Scott Redler