If you know me, and you follow my Stellar
posts, you KNOW that I've been calling for a breakdown of this ascending broadening wedge
formation. WOW WOW WOW! It's finally happening. Let me just pull a quote from my "Genius Calls in Stellar" post. "You can see that the price target is right at the 78.6% retrace. 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?" Technical analysis
can be so unbelievable. The lesson here, is that the largest pattern on the chart, always trumps the rest. So many people said "why do you have that 'huge failed breakout' thing up there?" As I said before, it was to show that the overall pattern was trumping an attempted breakout. The ascending broadening wedge
is a bearish pattern
that usually produces a breakdown. Judging by the height of this wedge
, if it corrected to just a fraction of it's true potential, it would render XLM
worthless. I find this so interesting, because XRP also has formations that would send it to zero, in a full scale correction. For those of you who may have no idea what I'm talking about, I'd like to draw your attention to the orange dotted vertical trendline
on the chart. That's actually a measurement of the height of the wedge
, which has been subtracted from the breakdown zone. Only a fraction of the measurement is showing, because the rest of it is far below zero. I'm not saying that XLM
is going to zero. I'm just showing you that this is how analysts find price targets. The size of the structure in front of me, easily suggests a price of zero. However, I will be modest. I say that, for now, we look to the 78.6% retrace for support. If that level breaks, we will reassess the downside potential.
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-
If you'd like to see how I called the top in XLM
, check out this chart...