During the trading session of Friday, October 18th, Beam [BEAM] experienced a notable 9.6% increase. By the current moment, the token has surged by an impressive 28.1% since hitting its recent low on October 10th. The prolonged downtrend observed since April appears to have transitioned into a consolidation phase.
Although this development is certainly positive for investors, the token is not yet poised for a major breakout. As a result, investors are advised to exercise patience and consider purchasing at the designated support levels.
Trading Opportunities Abound within Range Formation
BEAM has been moving within a predefined range since the middle of July. This range spans from $0.0115 to $0.0196, representing a difference of 71% from bottom to top. The broad range has presented swing traders with favorable opportunities for buying and selling in recent months.
The $0.0155 level, situated in the middle of the range, holds particular significance. Recent price action saw this level being retested as support, following which BEAM experienced an upward bounce. The emergence of a bullish crossover on the Awesome Oscillator indicates a potential shift in momentum.
However, the A/D indicator faced difficulties surpassing a level that previously acted as support in August and September, signaling the prevalence of distribution despite the gains in October.
As a result, swing traders should be prepared to sell BEAM around the upper bounds of the range and may contemplate short positions following a rejection near $0.0196.
Possible Upside Momentum due to Magnetic Zone
An analysis revealed prominent clusters of liquidation levels at $0.0185-$0.0188 and another at $0.0138. At present, BEAM is trading just under the former liquidity concentration.
With the mid-range level offering support and the liquidity pockets in mind, it is probable that the bulls will succeed in driving the price slightly higher. A bearish reversal could be expected upon retesting the $0.0188-$0.0196 range.
Disclaimer: The views presented in this article are opinion-based and do not constitute financial, investment, trading, or any other form of advice.