XLM has pulled back down to the long term weekly uptrend and found support. After being rejected at a 4 hour resistance level it has retraced back down to the trend line and formed a bullish engulfing candle right off the trend line. Finding some resistance already in this push, I expect it to head down and retest the weekly uptrend.
When it is back at this level I will be watching closely for a good entry after another bounce from the trend line.
The weekly uptrend line also forms the bottom of the large triangle formed between 2 weekly trend lines. This triangle has been respected at the top and bottom for quite some time so there could be good potential for a mid to long term hold on XLM.
Also could enter on the smaller time frames to catch a potential bounce off the trend line for a quick gain.
If XLM breaks down through the uptrend line, it is likely we will head down to 3k.
When it is back at this level I will be watching closely for a good entry after another bounce from the trend line.
The weekly uptrend line also forms the bottom of the large triangle formed between 2 weekly trend lines. This triangle has been respected at the top and bottom for quite some time so there could be good potential for a mid to long term hold on XLM.
Also could enter on the smaller time frames to catch a potential bounce off the trend line for a quick gain.
If XLM breaks down through the uptrend line, it is likely we will head down to 3k.
Dropping through the support and trend line before a bit of a rally.
Keeping a close eye on this but not entering for now.