Stacks (STX) price bounced off long-term support and broke out above a bullish formation. There are positive thoughts about a strong recovery in October.
Weekly View
Stacks price has declined since hitting a yearly high of $1.3 on March 20. This move pushed the price back to the previous resistance level of $0.4 on August 14. This area provided strong resistance for 154 days. Therefore, it is expected to act as support when the price tests again.
Indeed, the bulls actively defended this territory. Additionally, it formed a bullish candlestick last week. This shows that the bulls are taking control.
Although the weekly RSI is still below 50, it has broken above the descending resistance line and is sloping upwards. Therefore, this is an early sign of an impending recovery.
If the price continues to rise, the next significant resistance level is possible at $0.82.
Breaking the Bull Formation
The daily chart reveals that STX price is breaking above a descending wedge formed from the previously mentioned $1.3 high. This indicates that the previous downtrend has ended and a new uptrend has begun.
The daily RSI has also formed a bullish pattern and is above 50, indicating an advantage for the bulls.
Therefore, it is possible that STX price rises to the next resistance level at $0.64 in the coming days.
Technical indicators show that STX price is preparing for a new uptrend. The target is set at $0.64 and the higher target is set at $0.82.