XLMUSD - 4H - Cup & Handle OR Trendline break?
Updated
NOT A FINANCIAL ADVISOR!!!!
I am 50:50 here!! :)
Therefore I have Bullish and a Bearish Scenario.
Bullish Scenario:
- I see a possible Cup and Handle formation.
As the Cup is not perfectly formed, the target is not that clear but I would expect somewhere around the 26-28 cts.
Bearish Scenario:
- In case the trendline and the RSI breaks down ... uhmmm then I must say that the double top scenario is validated!
Strategy: using a Breakout strategy - breaking above 21.5 cts => higher probability to go higher (26-28 cts)
- breaking below trendline => higher probability to drop to the neckline 15.3
- breaking below 15.3 cts => higher probability to go even lower (8-11cts)
Do your own risk analysis.
(Good luck!)
I am 50:50 here!! :)
Therefore I have Bullish and a Bearish Scenario.
Bullish Scenario:
- I see a possible Cup and Handle formation.
As the Cup is not perfectly formed, the target is not that clear but I would expect somewhere around the 26-28 cts.
Bearish Scenario:
- In case the trendline and the RSI breaks down ... uhmmm then I must say that the double top scenario is validated!
Strategy: using a Breakout strategy - breaking above 21.5 cts => higher probability to go higher (26-28 cts)
- breaking below trendline => higher probability to drop to the neckline 15.3
- breaking below 15.3 cts => higher probability to go even lower (8-11cts)
Do your own risk analysis.
(Good luck!)
Note
Just 2 updates here:1) You can see a second trendline that might play some role here => at least it was relevant to define the low for the "Cup".
2) Do check the indicators: Stoch RSI is about to become bullish and until RSI 4h is above support. I do have some issues with the RSI Daily!
Note
Careful here!Trade closed: stop reached
Note
Do note that 0.21 level didn't break higher. XLMUSD broke the trendline and the cup's low (&& BTCUSD selloff) leading to some red candles being painted.
I see a possibility for a reversal at this point and prices not reaching as low as previously stated (15 cts)...we will see!
BUT the range 15-21 cts is still in play! Meaning, a drop below 15 might lead to a sharp sell off to 11, while above 21 might lead to 26-28.
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