Stellar’s Lumen Technical Analysis – Hits Reverse – 12/09/18

What a difference a day makes… A trend bucking rally on Tuesday and a tumble on Wednesday, with the news wires doing the damage.
Bob Mason
stellar xlm

Key Highlights

  • Stellar’s Lumen rallied 5.03% on Tuesday, bucking the trend across the broader market, to end the day at $0.2007.
  • An afternoon pullback through the first major support level at $0.1865 to an intraday low and new swing lo $0.18189, called on support at the second major support level at $0.1818 before recovering.
  • Stellar’s Lumen rallied from the day low to an intraday high $0.21, breaking through the day’s major resistance levels before easing back through the third major resistance level at $0.2086 late in the day.
  • The extended bearish trend remained intact, with Stellar’s Lumen continuing to fall short of the 38.2% FIB Retracement Level of $0.2469

How to Buy Stellar’s Lumen

Stellar’s Lumen Price Support

Stellar’s Lumen bucked the trend across the broader market on Tuesday, rallying 5.03% off the back of a 0.5% rise on Monday, to end the day at $0.2007.

A relatively range bound start to the day saw Stellar’s Lumen move through to a morning high $0.19437 to come within reach of the day’s first major resistance level at $0.1954 before easing back. A late morning pullback saw Stellar’s Lumen slide through the day’s first major support level at $0.1865 to an intraday low and new swing low $0.18189, calling on support at the second major support level at $0.1818 before recovering.

Bucking the trend across the broader market, Stellar’s Lumen rallied through the late afternoon to an intraday high $0.21, breaking through the day’s major resistance levels before easing back through the third major resistance level at $0.2086 late in the day.

While the rest of the crypto majors were left languishing, Stellar’s Lumen managed to hold on to $0.20 levels to avoid a pullback through the first and second major resistance levels by the day’s end.

In spite of the day’s gain and hold on to $0.20 levels, the extended bearish trend remained intact with Tuesday’s new swing lo and with Stellar’s Lumen continuing to fall short of the 38.2% FIB Retracement Level of $0.2469.

At the time of writing, Stellar’s Lumen was down 4.47% to $0.19141, with the heavier losses coming off the back of Tuesday’s rally, a continued broad based market sell-off doing the damage in the early hours.

Stellar’s Lumen slid from an early morning high $0.020208 to a low $0.19, the moves through the early morning leaving the major support and resistance levels untested.

For the day ahead, a move back through $0.1975 would support another run at $0.20 levels, though for Stellar’s Lumen to take a run at $0.21 levels for a 2nd consecutive day to bring the day’s first major resistance level at $0.2132 into play, sentiment across the broader market will need to materially improve, the markets being hit with yet more bad news at the start of the week.

Failure to move back through to $0.1975 could see Stellar’s Lumen take a bigger hit later in the day, with a pullback through the morning low $0.19 bringing sub-$0.19 levels and the day’s first major support level at $0.1851 into play, Stellar’s Lumen still having more to give up.

We will expect some support to kick in as the market reaction to the latest court ruling on ICOs washes out, though a recovery of the day’s losses ahead of tomorrow’s EU finance ministers’ meeting may prove to be a step too far.

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Looking at the Technical Indicators

Major Support Level: $0.1851

Major Resistance Level: $0.2132

Fib 23.6% Retracement Level: $0.222

Fib 38% Retracement Level: $0.2469

Fib 62% Retracement Level: $0.2870

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