XLM - Cup & Handle
Updated
Hi
To begin with, I am no professional analyst and my TA is just my take on what I see, so please do your own due diligence and feel free to criticise positively.
I think the burn of 55B XLM was a good surprise move, something that its elder brother XRP cannot counter due to their ESCROW lock in. This has ensured that the supply of XLM to the open market shall always remain much lower than that of XRP, so essentially if and when Stellar does catch up with Ripple in terms of usage and partnership.. XLM value will always be higher, or so I assume that to be the case.
Regarding the chart, IMO XLM seems to be forming a cup and handle, though its half way through the stage and seems to be adhering to the formation till now. I expect XLM to hit the 0.07 mark before starting to complete the pattern of cup and handle, it is expected to counter a major resistance at 0.085 level due to the downward trend line as demonstrated, but I expect the 200 EMA to cross over this trendline and help rocket XLM to 0.12 levels post retracement from 0.085 to 0.081.
The cup will be complete at 0.162 price point and the retracement to 0.12 will mark the beginning of the handle, before it continues it upward movement to 0.21 and 0.23 price points.
Look forward to your comments and positive criticism.
Good luck to all !!
To begin with, I am no professional analyst and my TA is just my take on what I see, so please do your own due diligence and feel free to criticise positively.
I think the burn of 55B XLM was a good surprise move, something that its elder brother XRP cannot counter due to their ESCROW lock in. This has ensured that the supply of XLM to the open market shall always remain much lower than that of XRP, so essentially if and when Stellar does catch up with Ripple in terms of usage and partnership.. XLM value will always be higher, or so I assume that to be the case.
Regarding the chart, IMO XLM seems to be forming a cup and handle, though its half way through the stage and seems to be adhering to the formation till now. I expect XLM to hit the 0.07 mark before starting to complete the pattern of cup and handle, it is expected to counter a major resistance at 0.085 level due to the downward trend line as demonstrated, but I expect the 200 EMA to cross over this trendline and help rocket XLM to 0.12 levels post retracement from 0.085 to 0.081.
The cup will be complete at 0.162 price point and the retracement to 0.12 will mark the beginning of the handle, before it continues it upward movement to 0.21 and 0.23 price points.
Look forward to your comments and positive criticism.
Good luck to all !!
Note
IMO the Cup pattern will play out, as looking at the monthly chart we have a doji after a downward trend indicating a potential trend reversal. The reversal is confirmed by a green candle after the doji. I expect XLM to close November in the 0.85 to 0.88 region. December should see XLM break out from the red downward trend line towards the 0.16 mark and January 2020 signalling a retest of the downward trend line.
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