Stellar (XLM) Pullback Inconclusive, Further Selling Pressure Likely

Share On Facebook

Key Support Levels: $0.06, $0.05,$0.04

©

Key Resistance Levels: $0.09, $0.10, $0.11

XLM/USD Long-term Trend: Ranging
Stellar has been relatively slow in price movement. On December 17, the coin fell to a low of $0.042. In defense of the current low, the price pulled back to a high of $0.046. The price movement has been insignificant as the market commences consolidation above the current price level.

Consolidation at the oversold region implies that buyers and sellers have reached equilibrium at the current price level. Stellar lacks buying at a lower level as the bears may take undue advantage to sink XLM to the $0.036 low. Alternatively, if the bulls continue their hold above the $0.042, the market will continue the sideways trend.

XLMUSD -Daily Chart

Daily Chart Indicators Reading:
Stellar is making frantic efforts to rise, as the coin is trading above the 25% range of the daily stochastic. This implies that the market is also in a bullish momentum. The 21-day SMA and the 50-day SMA are trending horizontally indicating the price range.

XLM/USD Medium-term bias: Bearish
On the 4 hour chart, the bear market exhausted its bearish run at the $0.042 support level. The coin is in a bullish move but  it is struggling above the $0.046 price level. The price action is characterized by small body candlesticks that are responsible for the range-bound movement.

XLMUSD - 4 Hour Chart

4-hour Chart Indicators Reading
The Relative Strength Index period 14 level 52 is above the centerline 50 which indicates that the price is rising. XLM may further depreciate if the support line of the channel is breached.

General Outlook for Stellar
Stellar is still in a downtrend. The coin is still at the bottom of the chart. Buyers are scarce at the lower price level to push Stellar upward. The market may depreciate further if the bulls fail to hold the $0.042 support.

Stellar Trade Signal
Instrument: XLM/USD
Order: Buy Limit
Entry price: $0.041
Stop: $0.035
Target: $0.08

Source: https://learn2.trade

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20200227 06:18:27