Analysis on FIRE! Check My Record! Stellar! (XLM) =D

Hi friends! I hope all is well. Let's take a look at Stellar! If you recall from yesterday's post "Stellar Being Squeezed On All Sides!" I was explaining that stellar was coiling and being compressed between several support and resistance zones. Additionally, I told you that once it broke, it had a high probability of producing a volatile move. Looking at the chart, you can see that I was spot-on with my analysis. Also going back to yesterday's post, I showed you the shooting star candle, and I explained how they can come just before a corrective move. Some people opposed the notion that the candle produced was in fact, a shooting star, but regardless, it produced the exact effect that I was anticipating. Now, I'd like to draw your attention the the 200 EMA (in purple.) From the left side of the chart, you can see that it was held once, and then held again, but now we've pierced it. In fact, XLM has pierced it with two consecutive candles in a row. This shows us that the 200 EMA is being violated, and it's happening more and more frequently. That is a sign that the 200 EMA is suddenly not as supportive as it used to be. Additionally, XLM is now trapped inside of a downtrend channel, increasing the likelihood of further downside pressure. With this in mind, it will be important to watch what happens on the 200 EMA. If it is broken, (which, now that I've looked agin, it is being broken right now) initial support lies just below at the 61.8% retrace, which is around 39 cents. A drop below there, opens up some air for XLM to fall. On the upside, if the bulls can hold the 200 EMA, they need to rally back to the top of the falling channel, and push for a breakout.

This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Pleas follow, comment, like, and share on socisal media! Good luck trading everyone. Peace!

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

-JD-