It's a bearish start to the week, after forming a bearish trend reversal over the weekend, with profit taking weighing in the early hours.
Stellar’s Lumen rallied 17.66% on Sunday, reversing Saturday’s 3.9% loss with interest, to end the week up 36.62% to $0.28252.
A bullish start to the day saw Stellar’s Lumen break through the 38.2% FIB Retracement Level of $0.2469 and the 62% FIB Retracement Level of $0.287 to a late morning intraday high $0.305 before easing back, the morning moves seeing Stellar’s Lumen break through the day’s major resistance levels with ease.
An early afternoon reversal saw Stellar’s Lumen pullback through the 62% FIB Retracement level to an afternoon low $0.27019 before finding support, leading to a late in the day move back through the 62% FIB Retracement Level to affirm the formation of a bearish trend reversal.
The Sunday rally was in contrast to some of the other major cryptos that struggled through the weekend, product differentiation beginning to influence direction across the broader market, the weekend gain also bringing Stellar’s Lumen within reach of EOS and a 5th place ranking amongst the majors.
At the time of writing, Stellar’s Lumen was down 1.98% to $0.277, with Stellar’s Lumen testing support at the 23.6% FIB Retracement Level of $0.2759 in the early hours, Stellar’s Lumen pulling back from a morning high $0.28309, the moves through the early morning leaving the day’s major support and resistance levels left untested.
For the day ahead, a move back through to $0.28 levels would support another run at $0.30 levels to bring the day’s first major resistance level at $0.3118 into play, though Stellar’s Lumen will need to avoid a pullback through the 23.6% FIB Retracement Level of $0.2759 to support a move through to $0.28 levels and avoid a sharp reversal on profit taking.
Failure to move back through to $0.28 levels could see Stellar’s Lumen continue a reversal through the day, with a fall through to $0.26 levels bringing the day’s first major support level at $0.2464 into play, before any recovery, holding above $0.2757 key to avoid an afternoon slide.
Major Support Level: $0.2464
Major Resistance Level: $0.3118
Fib 23.6% Retracement Level: $0.2759
Fib 38% Retracement Level: $0.258
Fib 62% Retracement Level: $0.2289
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.