XLMUSD rockets, gaining $0.0209 (23.59%) within a single day on high volume
Stellar/US Dollar Index (XLMUSD) Technical Analysis Report for Nov 21, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, XLMUSD ended Saturday at 0.1095 surging $0.0209 (23.59%) on high volume. This is the biggest single-day gain in over a year. Today's close at 0.1095 marks the highest recorded closing price since August 17th. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (XLMUSD as at Nov 21, 2020):
Saturday's trading range has been $0.0214 (24.15%), that's far above the last trading month's daily average range of $0.0052. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for XLMUSD.
One bullish candlestick pattern matches today's price action, the White Candle.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 0.0825.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 0.1196, upside momentum might speed up should XLM/USD be able to break out to new highs for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for XLM/USD. Out of 86 times, XLMUSD closed lower 60.47% of the time on the next trading day after the market condition occurred.