XLMUSD closes within prior day's range after lackluster session
Stellar/US Dollar Index (XLMUSD) Technical Analysis Report for Jul 04, 2020 | by Techniquant Editorial Team
XLMUSD ended Saturday at 0.0679 gaining $0.0008 (1.19%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (XLMUSD as at Jul 04, 2020):
Saturday's trading range has been $0.0020 (2.98%), that's below the last trading month's daily average range of $0.0034. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for XLMUSD.
Notwithstanding a weak opening XLM managed to close above the previous day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on June 22nd, XLMUSD actually lost -1.39% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the Tweezer Bottom.
Unable to break through the key technical resistance level at 0.0683 (R1), the market closed below it after spiking up to 0.0685 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. After having been unable to move lower than 0.0665 in the prior session, Stellar found buyers again around the same price level today at 0.0665.
Though the cryptocurrency is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the close-by swing high at 0.0715 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 0.0659 where further sell stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for XLM/USD. Out of 173 times, XLMUSD closed lower 56.65% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after two trading days, showing a win rate of 56.65% with an average market move of -0.37%.
With seven out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are LTCUSD gaining 2.31% and BCHUSD closing 2.07% higher. None of the markets ended the day in the red. Looking at the other Minor Cryptocurrencies, the winners of the day have been VETBTC surging 21.24% and LTCCNY closing 4.51% higher. The worst performers of the day have been DOGEUSD tanking -3.01% and ICXBTC closing -1.88% lower. Read more