Ok, lets have a quick look at STEEM vs Bitcoin on the daily chart.
Back on the 11th of April we finally broke out of the long term down trend channel! The EMA 12 crossed over the EMA 26 in a bullish reversal fashion around the same time, and since then we have formed a smaller uptrend channel which we are currently trading within.
Over the last few days we have tested how much support the EMA 12 would provide us. Although we did pierce through it on the 22nd and 23rd though it has since held, albeit support is only just holding currently.
As you can see we are also currently testing the resistance of the 23.6% Fib which has thus far provided some tough resistance. So it’s possible that we will break out to the down side of the smaller dotted uptrend channel, which could result in a move further downwards to perhaps test the support of 23.6% fib level. (Note: there is also the possibility of a small descending triangle forming which is not completed so I have not added it in, though it is on my mind. The next few days will give us confirmation). In addition it's worth mentioning there is very low volume currently, so unless volume builds and quick, then we are unlikely to break through the 23.6% and continue the uptrend.
The MACD is sitting fairly neutral, with (thought there is not much momentum so this could change quickly!), and Aroon Up is started to trend downwards – both suggesting indecisiveness.
At time of writing we have a falling three methods candlestick pattern emerging on the half hour chart, hinting at the possibility of a break to the downside of the uptrend channel, though this is only an emerging pattern and has not actually completed yet.
In terms of trading I am waiting to see whether the uptrend channel holds. Provided it does hold and we can break through the 38.2% fib (we need to see an increase in volume to get us there), there is not a lot of resistance until the 61.8% fib. On confirmation of breakout is where I will be executing my buy order, with a sell just short of the 61.8% fib. If the channel doesn’t hold, then I can see a drop to re-test the 23.6% fib which would be an excellent buy zone. For now we wait and within the next 2-3 days we will have a clearer picture of how this plays out and whether I go long or short in the short term.
Cheers!
Back on the 11th of April we finally broke out of the long term down trend channel! The EMA 12 crossed over the EMA 26 in a bullish reversal fashion around the same time, and since then we have formed a smaller uptrend channel which we are currently trading within.
Over the last few days we have tested how much support the EMA 12 would provide us. Although we did pierce through it on the 22nd and 23rd though it has since held, albeit support is only just holding currently.
As you can see we are also currently testing the resistance of the 23.6% Fib which has thus far provided some tough resistance. So it’s possible that we will break out to the down side of the smaller dotted uptrend channel, which could result in a move further downwards to perhaps test the support of 23.6% fib level. (Note: there is also the possibility of a small descending triangle forming which is not completed so I have not added it in, though it is on my mind. The next few days will give us confirmation). In addition it's worth mentioning there is very low volume currently, so unless volume builds and quick, then we are unlikely to break through the 23.6% and continue the uptrend.
The MACD is sitting fairly neutral, with (thought there is not much momentum so this could change quickly!), and Aroon Up is started to trend downwards – both suggesting indecisiveness.
At time of writing we have a falling three methods candlestick pattern emerging on the half hour chart, hinting at the possibility of a break to the downside of the uptrend channel, though this is only an emerging pattern and has not actually completed yet.
In terms of trading I am waiting to see whether the uptrend channel holds. Provided it does hold and we can break through the 38.2% fib (we need to see an increase in volume to get us there), there is not a lot of resistance until the 61.8% fib. On confirmation of breakout is where I will be executing my buy order, with a sell just short of the 61.8% fib. If the channel doesn’t hold, then I can see a drop to re-test the 23.6% fib which would be an excellent buy zone. For now we wait and within the next 2-3 days we will have a clearer picture of how this plays out and whether I go long or short in the short term.
Cheers!