The price of Stacks (STX) has bounced off long-term support and broken above a bullish pattern. It is expected to recover strongly in October.
Weekly Outlook
The price of Stacks (STX) has declined since reaching its yearly high at $1.3 on March 20th. This move pushed the price back to the previous resistance level at $0.4 on August 14th. As this area had provided strong resistance for 154 days, it is expected to act as support when the price retests it.
Indeed, the bulls have defended this area actively and formed a bullish candle last week. This shows that the bulls have gained control.
Although the weekly RSI is still below 50, it has broken above the descending resistance line and is sloping upward. This is an early sign indicating an impending recovery.
If the price continues to rise, the next crucial resistance level can be found at $0.82.
Breakout of Bullish Pattern
The daily chart reveals that the STX price has broken out above a descending wedge formed from the high of $1.3 mentioned earlier. This indicates that the previous downtrend has concluded, and a new uptrend has begun.
The daily RSI has also formed a bullish structure and is above 50, indicating an advantage for the bulls.
Therefore, the STX price could rise to the next resistance level at $0.64 in the coming days.
Conclusion
Technical indicators suggest that the STX price is poised for a new uptrend. The immediate target is found at $0.64, with a higher target at $0.82.
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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