XLMUSD runs into sellers around 0.0858 for the third day in a row


Stellar/US Dollar Index (XLMUSD) Technical Analysis Report for Oct 25, 2020 | by Techniquant Editorial Team

Highlights

XLMUSD runs into sellers around 0.0858 for the third day in a row
XLMUSD dominated by bears dragging the market lower throughout the day
XLMUSD breaks below Saturday's low

Overview

XLMUSD ended Sunday at 0.0831 losing $0.0026 (-3.03%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Saturday's low at 0.0834, XLM/USD confirmed its breakout through the prior session low after trading up to $0.0012 below it intraday.

Daily Candlestick Chart (XLMUSD as at Oct 25, 2020):

Daily technical analysis candlestick chart for Stellar/US Dollar Index (XLMUSD) as at Oct 25, 2020

Sunday's trading range has been $0.0036 (4.2%), that's slightly below the last trading month's daily average range of $0.0040. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for XLMUSD.

Despite a strong opening XLM closed below the previous day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on Friday, XLMUSD actually gained 2.27% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.

The market ran into sellers again today around 0.0858 for the third trading day in a row after having found sellers at 0.0862 in the prior session and at 0.0864 two days ago.

Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.

Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for XLM/USD. Out of 89 times, XLMUSD closed lower 50.56% 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 seven trading days, showing a win rate of 58.43% with an average market move of 0.03%.


Market Conditions for XLMUSD as at Oct 25, 2020

Loading Market Conditions for XLMUSD (Stellar/US Dollar Index)...
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XLMUSD closes within prior day's range

Nov 28, 2020
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