Welcome, friends, to this update analysis on Stellar!
Wow, was that head and shoulders projection accurate or what?! I don't care what anyone has to say, masterful technical analysis is, hands down, the most valuable tool in all of investing. Technical analysis is often butchered by novices, but when it's perfected, it is undeniably accurate.
Now that we know that our head and shoulders pattern has materialized, we can begin to project a breakdown target. However, you must remember that you NEVER short a head and shoulders pattern, until the breakdown begins. That logic applies to all technical patterns. As you can see, I've taken a measurement of the structure, and subtracted that measurement from the would-be breakdown level. You can see that the price target, should the head and shoulders pattern correct to it's full potential, is right at the 78.6% retrace. OMG. Do you see what I mean? I've been saying for WEEKS literally, that the overall pattern here, which is the ascending broadening wedge (in blue dashes) should produce a break to the downside. Now, we have a head and shoulders with a price projection below the lower trendline of the wedge. How insane is that? As you've heard me say, in many other analyses, THIS is the fractal nature of the markets at work. It is a collection of separate structures, that replicate the whole. Charts are like puzzles. When you put the little pieces together, you begin to see the big picture.
A break below the head and shoulders neckline, will likely send XLM to the 618 support level. However, I'm not so sure it will be supportive this time. A break below that, should send XLM screaming down to test the bottom of the wedge. On the upside, the 50% retrace, 200 EMA (in purple,) and the 50 EMA (in orange,) should keep attempted rallies in check.
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-
Kommentar
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If you want to see how I called the top in XLM, take a look at my older chart...
I am going to start calling you.....The man....the myth....the legend!
legendaryduh
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Ten points! Ten points to Gryffindor!
supernoveau
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This has been fun and super educating the last few weeks MPC! Thanks so much. Any incoming TA on Neo? Cheers
RobertL72899916
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I’ve been watching your forecasts
Nice work
Can u give any info on CINDICATOR ( CND )
Thank you
toddmmddot
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Great work. By far my favorite TA artist on this site!
MagicPoopCannon
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@toddmmddot, Thank you toddmmddot. It is a pleasure to be at your service.
-Magic-
seiferflo
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hi @MagicPoopCannon, could you give a brief look at XLM/BTC ? The 1W makes me think we're almost done for that run, but on the 4h i'm curious to find out if we can pass the previous ath. Would be great if you could give a brief feedback? Thanks mate, nice work