XLMUSD : Long Term Bullish Ascending triangle. Target $5.7
On the Monthly chart XLM is forming a long-term bullish ascending triangle pattern with a first major target of $5.70.
The chart shows the ascending pattern has been forming since 2018, which makes this a long-term play for patient traders.
The ascending triangle pattern is a bullish formation identified by 3 or more previous resistance levels that form a flat top. This area is marked on the chart as points A, B, and C.
The ascending triangle also forms a series of higher lows that create a bullish trendline on the bottom. A bullish breakout occurs when the price breaks above the top resistance level, which is at $0.55.
Note: If the price moves back down to form another higher low before moving back up, it can move as low as $0.155 before reversing upward.
This is a longer-term trade with a minimum 10x potential.
Why 10x Potential?
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The target of the ascending triangle is measured from the top of the back of the triangle (Point A) to where it meets the bottom of the triangle.
When this target (marked as 'Target Marker') is added to the top of the triangle, the target is actually $10.00;
However, for the sake of conservatism, I used Point B, which gives the move a target of $5.70 as the first major target.
Trading Strategies
What if I'm fearful?
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Great question! Then wait for a close above the top resistance at $0.55 before entering the long-term trade.
What if I'm feeling brave?
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Another great question! In this case, add to your position when the price touches the bottom trendline again.
What is This Bullish Ascending Triangle Pattern?
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Click on the charts below to see how this pattern has played out in other charts:
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