Stellar Bounces — Into A Bear Flag! (XLM)

Hi friends! Welcome to this update analysis on Stellar! Looking at the four hour XLM chart, we can see that a nice bounce has occurred off of the bottom of the ascending broadening wedge . Additionally, green volume is starting to appear on the chart, as the MACD crosses over bullish , confirming the presence of the bulls. However, the consolidation off of the low appears to be a bear flag . In fact, I will label it as a bear flag , and I will treat it as a bear flag , until it proves to me that it isn't a bear flag . I want to see a break above the 50 EMA (in orange,) the 200 EMA (in purple,) the 50% retrace, and the top of the bear flag , to know for sure that it isn't a bear flag . Until then, I simply cannot side with the bulls, off of this unimpressive bounce. Could this be a bottom in the market? Absolutely. However, until the aforementioned developments start to materialize, I will remain skeptical. Pay close attention to what happens in this consolidation zone, and particularly, which direction it breaks.

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***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***

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