Haven't done one of these and here's a potential massive gainer I'm keeping an eye on..
XLM
So here we have a pretty clear consolidation pattern following that prior run to ATH around 6k sat. Tested lower fib levels and slowly ground its way up, very very healthy signs.
A couple things to note here..
- Volume has fallen off a cliff since the prior bull run, which is a sign that this is very likely it is healthy consolidation resulting with a run higher
- 12 hour RSI has broken the downtrend with that pop we saw yesterday morning, signifying it is ready to test the next region
- MACD shows small upside confirmation
- Histogram clear bullish divergence (trendline on bottom)
Zooming into the 4 hour we can see a couple other interesting things..
Price action is successfully trading above that former resistance trend line, so from a TA perspective it has a free ride to the upper resistance trend line around 5.5k sat
Also even more important, the exponential moving averages are signifying a trend flip to the upside.. this is more of a longer term indicator but its very important to keep an eye on it as many algo traders will be entering based on just that info alone for a swing trade.
So what's next to watch for?
Well if price action can close above this upper resistance trend line above 5.5k sat pictured here..
If that happens then we very very highly heavily giganticly likely have a full on breakout on our hands.
A measured move can be made off this type of consolidation pattern which would take us around 10k sat but this is NOT an exact thing, just gets us in the ballpark nevertheless a good idea to keep in the back of your mind.
Lastly keeping the big picture in mind..
Looks like a gigantic cup and handle.. a very impressive one at that. This is an extremely strong pattern and a high chance of continuation if the criteria is met I wrote about earlier..
**Failure on this would be a daily close outside the lower bound around about 4.3k sat
Not financial advice, just sharing one of my ideas I'm heavily looking at. No time frame on this just be aware of the triggering events!