XLM (Stellar Lumens) Trade Setup 13-07-20

Stellar (XLM) has been one of the altcoins I've been paying very close attention to in recent months and it finally met the criteria I was looking for a larger swing trade. Let's check out the chart.

The weekly level I've been watching closely which rejected XLM 4 times previously has finally been cleared - 5th time was the charm. This is the first time Stellar has traded above $0.09 in a year and it also marks the first close outside of the accumulation range Stellar has been in since September 2019. Further confluence comes from breakouts on both weekly OBV and RSI, and most importantly, the breakout came on unprecedented volume as shown on the chart.


Hopefully this setup is pretty clear from the chart. I'm already in a position from lower but I'm looking to add (and this would be my entry if I was not already in) on a re-test of that weekly s/r flip and former range, in other words I'd scatter bids $0.086 to $0.092, with the expectation that those lower bids likely don't fill.


There's two primary targets I'm looking at, the first being around $0.16 though I expect $0.13 may pose a bit of a challenge. The next one, much higher up, is around $0.28 which would be a 2x. I've included stop-losses in the chart but these are just guidelines and will depend on your risk tolerance. Personally, I'm unlikely to use a hard stop and rather, my invalidation would be a weekly close back below the range.


I am still pretty tentative about Bitcoin so I'm trading the USDT pair here. If stopped out from a BTC dump, I still retain most the USD value; likewise if Bitcoin breaks to the upside, the USDT pair should appreciate (though perhaps not to the magnitude of BTC).


In summary:


Entry: $0.086-$0.092, bids staggered with most falling between $0.09-0.092

Targets: $0.16, $0.28

Invalidation: Weekly close back below support


I likely won't be providing any updates on this trade here, so make sure to follow me on Twitter.


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