Steem Price Action – Bearish U-Turn Already? Volume Says Otherwise

Steem Price Action – Bearish U-Turn Already?  Volume Says Otherwise
January 24 05:23 2019

Just a day ago I wrote about the price of steem working on a longer term bottoming formation.  However, within that you will have your moves up and down and one of those moves could even bust up the formation all together.

So let’s take a look at the reversal pattern we got due to yesterday’s candle close.

 Bearish U-Turn

I talked about the bullish u-turn pattern alot during the bull market, but right now we are discussing a bearish u-turn.

The gist of it is after two or more up days in a row the next candle trades above the previous day’s high but closes below, ideally with a reversal type candle as we received on the chart above (see gold circle)

Volume Missing

One of these keys though is a rise in volume, especially on the reversal day.  That general has made the pattern more reliable when it it accompanied by volume.

On this move it is severely lacking.  After high volume green days we are seeing a low volume reversal down day followed by another low volume (thus far) down day.

I’m happy to see it as maybe this is just a breather to get back to the 10 day moving average so not to get extended.

I’ll be happy on the bull side when prices closes above that reversal high around 46 cents.  Ideally we hold the 10 day (blue line) and then rally through the mid .40s.

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