Stellar(XLM) Look to buy on dips
Updated
This is a daily chart for the XLMUSD showing 3 months of performance. This chart is also excellent at defining the long-term trends for the market.
The bear market began when the price fell through the 20-Day exponential moving average and touched the 100-Day EMA. Also, the RSI tested the 50 level, another important indicator of bear markets and turned back down. The MACD crossing down through centerline is another sign of bear market.
The price bottom forms when each of these indicators reverses and crosses through their signal lines. When the MACD climbing through its 9-Day moving average is another. The RSI above 50 is another signal to follow for an end to a bear market. Finally, when the price crosses up through the 20-Day moving average, we have another signal of end of the bear market.
The RSI is testing the 50 level, a sign of indecision. The MACD is trending up but have the centerline resistance above. It looks like the price paused to consolidate its gains before continuing up. We need to look at the shorter-term charts and the market indicators before making a decision.
The bear market began when the price fell through the 20-Day exponential moving average and touched the 100-Day EMA. Also, the RSI tested the 50 level, another important indicator of bear markets and turned back down. The MACD crossing down through centerline is another sign of bear market.
The price bottom forms when each of these indicators reverses and crosses through their signal lines. When the MACD climbing through its 9-Day moving average is another. The RSI above 50 is another signal to follow for an end to a bear market. Finally, when the price crosses up through the 20-Day moving average, we have another signal of end of the bear market.
The RSI is testing the 50 level, a sign of indecision. The MACD is trending up but have the centerline resistance above. It looks like the price paused to consolidate its gains before continuing up. We need to look at the shorter-term charts and the market indicators before making a decision.
Note
The four-hour XLM trend chart shows that the market continues to fall, the price can't broken through resistance of the 20H EMA. The next support level is the 0.255 area.
RSI is below 50, a sign of a downtrend trend. The MACD has reached a high point and it is turning down through the 9H moving average, giving a sell signal. Also, volume is below average, a sign buyers have not joined in the rally so far.
Note
On the 30M chart of the XLMUSD, the price is facing combined resistance from 20M EMA, 50M EMA and 100M EMA. Volume on the last two days has been below average, a negative sign.
RSI is below 50 indicating the down trend. The MACD turned down through the 9M moving average, giving a sell sign.
The 30M chart of the XLMUSD is telling us the market is in the process of testing whether the recent rally down will continue.
I am expecting the market to trade in the 0.255 area and lows in the 0.2 level.
Look to buy on dips in the market to important support levels.
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