18% Gone Since My Bear Call Yesterday — Stellar! (XLM)
Welcome friends and haters alike — to this spectacular analysis, brought to you by the often imitated, never duplicated, legendary wizard of the markets! Let's jump right in! Looking at the four hour XLM chart, you can see that an 18% drop has occurred since my bearish post from yesterday, in which I called for more downside. When will they ever learn?
If you recall from my post, I said " You can see that the 200 EMA and the 50% retrace are converging, which should strengthen that level as support. I would expect to see some sort of a reaction at that level. However, if XLM blows straight through it, the bears will have snapped two support levels in one fell swoop, which would likely trigger even more selling." Looking at the chart, we can see that the bears have, in fact, blown straight through the 200 EMA and the 50% retrace. The next area of support should be around the pink trendline, and then the 61.8% retrace. What I'm interested in seeing now, is whether or not we make a lower low. A test of the 618, would solidify a lower low on the chart. Looking at the MACD, we can see that it's plummeting into sell-side territory. This move is getting a little over extended, but volume is continuing to rise, and momentum is continuing to expand. Going forward, let's look to see if we get a break below the pink support level, and then a test of the 618. I do expect a pause here shortly, but if XLM smashes through the 618, the bottom of the wedge would be up next.
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-
If you recall from my post, I said " You can see that the 200 EMA and the 50% retrace are converging, which should strengthen that level as support. I would expect to see some sort of a reaction at that level. However, if XLM blows straight through it, the bears will have snapped two support levels in one fell swoop, which would likely trigger even more selling." Looking at the chart, we can see that the bears have, in fact, blown straight through the 200 EMA and the 50% retrace. The next area of support should be around the pink trendline, and then the 61.8% retrace. What I'm interested in seeing now, is whether or not we make a lower low. A test of the 618, would solidify a lower low on the chart. Looking at the MACD, we can see that it's plummeting into sell-side territory. This move is getting a little over extended, but volume is continuing to rise, and momentum is continuing to expand. Going forward, let's look to see if we get a break below the pink support level, and then a test of the 618. I do expect a pause here shortly, but if XLM smashes through the 618, the bottom of the wedge would be up next.
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-