A look at the Weekly chart for Stellar in logarithmic form shows that price is trading at $0.077, slightly below the 200-Period MA and very close to the major support area formed by the highs of April 2017 at $0.006-0.0065.
It is worth noting that for the first time we have had a weekly close below the 200-period MA
Price is trading below the 7, 21, 50, period moving averages and the Ichimoku Cloud.
Multiple bearish crosses have occurred.
The MACD is falling, albeit with decreasing power and looks to be steadying, possibly setting itself up for a bullish cross.
Similar to the weekly chart, a look at the 3-day chart gives a bearish outlook.
Price is trading below all the moving averages and the Ichimoku cloud.
Furthermore, the price is facing very close resistance from the 7-period MA which has made multiple bearish crosses.
The RSI is below 30, indicating oversold conditions; however, no bearish or bullish divergence has occurred.
The MACD has lost all of its power and has made a bearish cross, further validating the bearish outlook.
A look at the Daily chart gives a similar bearish outlook but gives the first bullish sign.
We can see that there is bullish divergence developing in the MACD for quite some time.
Furthermore, the RSI is in oversold territory, but there is no divergence yet.
However, after rejecting a bullish cross multiple times, the 7-period MA is falling and providing very close resistance to the price.
Price is trading below all moving averages and the Ichimoku Cloud.
A look at the hourly chart gives us a structure in which price is trading in.
We can see that price has been trading in a downward channel since January 31st.
The 10:00 a.m. daily candle just broke through the resistance offered by the channel.
However, there are reasons to be skeptical.
Firstly, there was a very small amount of bullish divergence preceding the breakout.
Furthermore, the breakout was done in very low volume relative to past candles.
The next resistance areas will be found near 0.082 and 0.09.
Due to the extremely bearish long-term indicators, I believe that this is a fake breakout and after possibly reaching the resistance area at 0.082, the price will continue falling to the 0.06-0.065 support area.
- Price closed below the 200-week moving average.
- Price is very close to the support area of 0.06-0.065.
- Price just broke out of a downward channel.
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