Been taking a go at technical analysis. Here is one I did on Stella Lumens, last week.
On the weekly we see technical very similar to XRP’s explosive growth (hence the reason for this long-winded update and recommendation as an LTH for 2018). I’ve talked extensively about XLM’s fundamentals as well as serving as a direct competitor to XRP which is what allows the comparison in the first place. The long term downtrend has clearly been broken as MACD did a bullish crossover in November shortly after the IBM partnership was announced. Otherwise, RSI is overbought but nothing too concerning. What we do see however is price action that also broke through the flat kumo resistance and is doing its best to close above the crucial 2300 sat level for the week. Sundays candle close will be a HUGE indicator as to XLM’s trajectory through crypto-space in 2018. Furthermore, we see an impending TK cross in the making and a chikou span that is working its way past the previous ATH.
On the daily we see another bullish MACD occurred yesterday and far above the zero line (very bullish) where momentum is just starting to pick up again. The Tenkan is trending upwards bullishly with an overbought RSI that can still continue based on previous trends and comparable assets. (I usually never advise comparing two asset’s technicals but with XRP’s recent surge it would behoove me not to make a similar comparison as the potential for a similar growth rate is definitely in the cards for Stellar).
The 4-hour timeframe continues to paint a bullish picture although the Tenkan is beginning to flatten. MACD momentum still running; however, RSI is highly overbought which will lead me to re-entry targets. Yesterday’s TK cross and kumo breakout sets the stage for profit targets.
Optimal Re-entry: 1988
Likely Range: 1988 – 2050
S/L: 1591 (short term traders) & 1248 (hodlers - below flat kumo support)
Optimal Profit: 5.1k+
Interim Targets: 3049, 3450, 4103, 4816
Please give me your feedback, it is much appreciated! Thanks!
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