After last spring’s run up, STEEM has spent the better part of 5 months correcting, four of which have seen price bounded on the low end by a key support/resistance level at approximately 95¢. Two weeks ago price fell though that level on a third intermediate term thrust lower, but found support at the 50 week moving average and the lower Bollinger band. Price is now trying to regain that key level with the trend-momentum indicators confirming the attempt. It would be a very positive development should STEEM regain the 95¢ level.
The daily chart gives us a “close-up” that confirms the underlying constructiveness of the weekly chart with its expanding volume on up days and bullish diverging trend-momentum indicators, one of which, the Stoch RSI, is seen on this chart. We also see that the third thrust lower seen on the weekly chart is comprised of four pushes lower here on the daily chart, all of which fail to gain strength, although price did reach nominal new lows on each. These are all classic signs of smart money accumulation, and overhead breakout levels are not far away.
Zooming in on the 4 hour chart we see a clear inverse head and shoulder pattern on what was the fourth thrust lower on the daily chart (remember, that daily chart was our close-up on the third thrust lower on the weekly chart) with two hammer candlesticks forming its double head, or double bottom as it were. The original Fib retrace was bought and is being respected, and the MA’s are offering support and keeping price in a sideways pattern while the trend-momentum indicators correct, all of which often points to price consolidation just under important resistance levels before an impending bullish breakout.
It looks like STEEM has been under solid accumulation for the past few months and that it is perhaps very near the time when accumulation gives way to price mark-up. Either way, impending breakout, or further selling, longer term, the risk/reward is extremely favorable for long side buyers as it is obvious that the downside is quite limited, and the upside, as we all know, is the moon. 😎