Technical Analysis - Beam
BEAM/BTC - 11/21/2019
As shown in the chart above, we will be analyzing the technical status of Beam against Bitcoin.
We will be asking a series of questions to come to a reasonable conclusion:
Is BEAM/BTC in an uptrend?
Currently, we can see broken uptrend support since the 18th of November. Nevertheless, broken uptrend support does not mean a broken uptrend or a downtrend directly. Following the rules of a Fibonacci Retracement, an uptrend is only broken, when the price closes below the 61.8% line, for BEAM/BTC being the level of 7050. Taking this into account, as well as the price being at 7250, we can say that the uptrend is still valid, yet experiencing a healthy retrace. This brings us directly to the next question.
What can we expect from this retrace?
The retrace of BEAM/BTC started around 8440 and is apart of any coin and chart. Retraces are a healthy sign of a chart and provide in a bullish environment the best entry opportunities. Looking at the current retrace, we have to take the volume into account. Here, the volume shows most recently, no more significance. This translates that the market is either not interested in selling at these levels nor the sellers are exhausted. This should not be interpreted as a direct sign to buy, yet rather understood as a sign of weakness from the seller side, which means that this retrace could find an end soon.
What impression give the indicators?
We already covered the volume indicating a possible reversal early. The TJ-Index is at a very low state, showing only 1 out of 15 points. This is usually a sign that an asset is oversold. The FOMO Algorithm is still showing a sell signal since 8500. On this chart, we use rather aggressive settings for the algorithm, yet such a long-lasting Sell-signal could print a Buy-signal soon.
Overall, we can see an up-trending chart, experiencing a healthy and already exhausted retrace. This exhausted retrace and signs of a possible reversal, align perfectly with the 61.8% Fibonacci retracement line. There is no guarantee that this will reverse immediately.
This Technical Analysis is made by Kong Trading. The provided Analysis should not be considered financial advice!