Zooming out on the 1 week chart, we can see price has been operating within a larger wedge for over 1 year. STEEM has been testing the support on that wedge for a couple weeks now. So far, it’s holding up well.
Zooming in on the 4 hour chart below, we can see price seems to be operating in a descending channel (denoted in orange). Until last week, the support on the channel and support of the wedge have pretty much coincided. That’s not the case any more. This latest drop in price did not fall to the bottom of the channel, but instead found support right on the ascending support of the larger wedge. This is a bullish sign.
Looking at the 4 hour MACD, we can see the signal line and MACD line have been in bearish territory for almost 2 months. However, we’ve seen a series of higher lows each time. This suggests a slow building of strength.
The 1 day RSI seems to be forming a small rising wedge. This suggests price may break down and test the support of the larger wedge at least 1 more time. If the support breaks, we could see a drop to at least 12,800 satoshi. If the support holds, we could see a very impulsive move up. If you're considering buying STEEM, dollar cost averaging into a position after the next pull back may be a good buying opportunity. Stacking orders between 13,100 and 13,200 satoshi seems like a logical entry point. I'd have the stop just below the prior low at approximately 12,700 satoshi.
In today’s video analysis, I discuss what to expect in the next few weeks, traps to avoid and MUCH more information not found above. I hope you find it helpful.
Video Analysis:
If you’re viewing this on a site other than Steemit, and you don’t see the above video, navigate to Steemit or TIMM (https://mentormarket.io/profile/@workin2005?aff_id=Workin2005) in order to watch.
BIAS:
Short Term: Neutral
Longterm: Bullish
I hope this has been helpful. I’d be happy to answer any questions in the comment section below. Until next time, wishing you safe and profitable trading!
Workin
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