Stellar Price Analysis: XLM stalls at the previous wave high
- XLM trades over 5% higher on Friday but the bulls just could not extend on recent gains.
- The 55 EMA is not providing some support very close to 0.0700.
XLM/USD 1-hour chart
The uptrend in XLM has been quite impressive but just recently it seems the bulls may have just run out of steam. As you can see from the hourly chart below that the bulls just failed to test the previous wave high at 0.07438. Now there has been a lower high printed the bears will need to break 0.0660 to make a lower high lower low wave pattern.
The price is still trading above the 55 exponential and 200 simple moving averages. This would be seen as a bullish sign and the price even found support at the 55 EMA recently. There is also a trendline which could act as a support zone but for now, the price is slightly far away for a test. The volume indicator is showing that there is a lack of interest with the price at these level and furthermore when the candles are moving lower there seems to be more activity then. Lastly, the relative strength indicator is in a positive position above the 50 mid-line, well just about, so watch out for a break below.
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Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
