Baxia Markets
November 17, 2023

BNB and XLM Technical Insight: Head and Shoulder Patterns and Oscillator Dynamics

market analysis header image


BNB and XLM Technical Insight: Head and Shoulder Patterns and Oscillator Dynamics

BNB Price Action

On the 4-hour chart, Binance Coin (BNB) reveals the emergence of a head and shoulder pattern, signaling potential bearish momentum. The key support level, represented by the neckline, faced a break, but a subsequent piercing line, coupled with a preceding hammer, confirmed the neckline's strength as support. Bearish momentum intensifies if subsequent candlesticks breach and close below the neckline, particularly beneath the piercing pattern. Oscillator indicators, marked by a descending trendline in values, align with the bearish narrative, corroborating the head and shoulder pattern's formation. The pattern can be invalidated if BNB breaches the right shoulder, accompanied by RSI surpassing the 60 level and the MACD histogram and signal line residing above the 0 line.


BNB and XLM Technical Insight: Head and Shoulder Patterns and Oscillator Dynamics

XLM Price Action

Similarly, Stellar (XLM) portrays a head and shoulder pattern on the 4-hour timeframe, signaling potential downward movement. A bearish engulfing pattern at a crucial resistance level, demarcated by a blue rectangle, signifies a reliable point of reversal. Below this resistance lies the right shoulder of the head and shoulder pattern. A bullish engulfing pattern at the pattern's base confirms a potential bottom. A break below this key support level could trigger further declines, potentially leading to a death cross on the EMA 50 & 200. Conversely, an upward breakthrough above the right shoulder, breaching the key resistance level, accompanied by RSI surging beyond the 60 level and MACD histogram and signal line crossing above the 0 level, may pave the way for an extended bullish move. Investors closely watch these technical cues to navigate potential shifts in BNB and XLM prices.


Key Economic Releases to Watch Today

EUR, CPI (YoY) (Oct)

Actual 2.9% vs Forecast 2.9%

US, Building Permits (Oct) 

Forecast 1.450M vs Previous 1.471M

Open Live Account  

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. 

Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.

Subscribe by Email