Stacks (STX) Price Breaks Out Of The Long-term Pattern, Here’s A Potential Target
The Stacks (STX) price has broken above a long-term pattern and confirmed the previous resistance as support. It is expected to continue rising in the near future.
Long-Term Pattern Breakout
The Stacks (STX) price has been trading within a falling wedge since reaching a yearly high of $1.3 on March 20. This is a bullish pattern that often leads to breakouts in most cases.
Indeed, the STX price broke above the wedge during the week of October 16 to 22 with a large bullish candle. Since this pattern formed after an uptrend, breaking above it indicates the continuation of the previous upward trend.
The weekly RSI (Relative Strength Index) supports this possibility as it is above the 50 levels and trending upwards.
If the upward momentum continues, the STX price could rise to the significant horizontal resistance zone at $1.3, an increase of 108.19% from the current price.
Daily Outlook
The daily chart supports the bullish outlook from the weekly timeframe. It shows that the STX price broke above the crucial resistance zone at $0.6 and confirmed it as support twice in the last few days (2 green arrows).
This action could form a potential double bottom pattern, another bullish pattern often leading to the continuation of the previous upward trend.
Furthermore, it is combined with a hidden bullish divergence in the daily RSI.
Therefore, the STX price may rise to the resistance zone at $0.74 in the next few days. Breaking above this zone could help the price rise to the next resistance at $0.87.
Conclusion
Technical signals indicate that the STX price will likely continue to rise in the near future. The nearest target is found at $0.74, with further potential targets at $0.87 and $1.3.
The upward trend could be jeopardized if the STX price breaks down below the $0.6 zone. In that case, it may decline to the next support zone at $0.53.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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