Hi friends! Welcome to this update analysis on Stellar! Looking at the four hour chart, we can see that XLM has exploded higher, after breaking out above the downtrend channel (blue dots.) If you recall from my last post, I said "we can see that XLM remains above the falling downtrend channel, as it tests substantial overhead resistance. You can see that several resistance levels are converging in the same general area. You have the 200 EMA (in purple,) and the 50 EMA (in orange,) and the 50% retrace. If the bulls can manage to get above those levels, it would open up a clear shot to the bottom of the 38.2% retrace, around 0.615." Looking at the chart, we can see that I was spot on with this analysis. I knew that if XLM broke above those levels, it would rip higher. As you can see, that has happened exactly. So, what does this all mean? Well, it means I'm a freakin' sick analyst, but beyond that, it means that we've kissed that old downtrend channel goodbye! The bulls are clearly turning things around, as momentum expands higher, well above the zero line. As you can see on the chart, I've drawn a new black uptrend channel. It's possible that we've just created this new channel, and we may be heading up to test the top of it. There are no signs of a slowdown in buying, and it looks like XLM is currently defining the 38.2% retrace as new support. Given these new developments, we now have technical evidence that shows us that a trend reversal is taking place. We have a higher low, and now a higher high. Technically, we've just morphed from a downtrend into an uptrend. That is the definition of a trend reversal. For a sign of ultimate bullishness, one that suggests that new all time highs are coming, XLM still needs to get above the top dashed blue trendline. Remember, we aren't out of the woods yet. The treeline is at the top blue dashed trendline. On the upside, the top of the black channel should act as resistance. On the downside, look for the 38.2% retrace to hold! If it falls, the 50 EMA, and the bottom of the black channel should be supportive.
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-
Comentarios
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I don't know why that "huge failed breakout" box is always crooked. It's straight on my chart, but not on here. SMH
Riding the purple downtrend for so long, I took a gamble and got in! Then once we got about 50EMA I knew it was go time. Been watching for your posts! Thanks!
ZipZapZoop
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Cheers MPC!
Tsentr
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3 hours rsi div tells me it is 3-2-3 cprrection and it is the end of wave B and we should have 3 wave down before new real uptrend. Maybe I am wrong - but I wouldn't risk my money in this case