The daily chart of Stellar gives us an interesting trading opportunity. The market bounced from a support zone formed by the uptrend line and 0.015000 support level. RSI confirmed price reversal. After that the price moved upward and broke the downtrend line. It was a signal confirming a possible upward movement. A new swing low is higher than the previous one and it tells us that the market becomes bullish. We must be ready to see a new up trend. It gives us a new buy opportunity and we have to think about possible entry levels.
I offer to entry the market based on a breakout signal. We should place pending orders for buy above the local swing high. It is higher than 0.022500 resistance level. If the market breaks this level, we’ll get a new swing high higher than the previous one. It will be an additional confirmation of the up trend. Stop orders must be placed below 0.014000 level which is lower than the uptrend line. Profit targets should be at 0.040000 and 0.055000 resistance levels. Also if the market retraces from 0.022500 resistance level and then reverses from the uptrend line, we’ll get a new buy signal with the same stop and profit levels. If you don’t use leverage, recommended trading volume for this trade is up to 5% from your deposit.
Profit Targets: 0.040000 and 0.055000
The trading signal is based on Poloniex chart.