Stellar about to break bullish flag and fly
Updated
Stellar has been in a flag pattern and has been beating on the resistance level. We are also getting confluence from the RSI on the 2hr chart, which is about to break into the bullish zone again (65+ points). It should break it within the next 2 hours to the upside to complete Wave 5 of this EW pattern.
EW guidelines state that Wave 5 can go up to 1.68 of the fib extension of Wave 1-2 (or all the way up to 2.618,) or can make a 1:1 measured move of Wave 3 (or up to 1.618.) Note that this is not always the case, but more times than not, you can rely on these guidelines.
So, the lower target zone is between 1827 and 1962 sats.
The upper target zone is a little larger: 2190 and 2550 sats.
It is more likely we will reach the lower target zone, because (another guideline) when Wave 3 makes a 1:1 move to Wave 1, which is the case here, then we will (many times) see Wave 5 will move to 1.618 of Wave 1-2's extension. However, you should keep an eye on the charts because every now and then, you might get a special surprise.
side note: The fib extension on the right is the extension of Wave 3-4, the one on the left is Wave 1-2
As always, this is not financial advice and you should use this TA only for comparison. Good luck and happy trading.
EW guidelines state that Wave 5 can go up to 1.68 of the fib extension of Wave 1-2 (or all the way up to 2.618,) or can make a 1:1 measured move of Wave 3 (or up to 1.618.) Note that this is not always the case, but more times than not, you can rely on these guidelines.
So, the lower target zone is between 1827 and 1962 sats.
The upper target zone is a little larger: 2190 and 2550 sats.
It is more likely we will reach the lower target zone, because (another guideline) when Wave 3 makes a 1:1 move to Wave 1, which is the case here, then we will (many times) see Wave 5 will move to 1.618 of Wave 1-2's extension. However, you should keep an eye on the charts because every now and then, you might get a special surprise.
side note: The fib extension on the right is the extension of Wave 3-4, the one on the left is Wave 1-2
As always, this is not financial advice and you should use this TA only for comparison. Good luck and happy trading.
Note
Closer look at the flag (30 min chart)Note
The whales are playing paddy cake. Expect consolidation to continue a little longer (possibly 6 hours if current, adjusted support holds.)Note
IMPORTANT: LONG CHANGED TO SHORT..Our bullish flag has changed to an ascending triangle, which signals likely bearish activity ahead. I am currently considering adding a stop loss just below the triangle’s support line and sliding it up for as long as the price doesn’t break support.
Order cancelled
As noted above, I said we were developing a ascending triangle. I meant rising wedge. (I woke up in the middle of the night and saw it happening, so apologies, I was pretty groggy when I wrote the update.) Anyways, as you can see, we have broken to the downside and have closed under the 55 EMA, which shows strong indication of continued bearish moves. Please follow my new post for further details.
Note
(Click the picture for the post)
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