EOS: Showing signs of strength...but not out of the woods yet

EOS has shown some strength in the last 24 hours. It briefly broke out of the wedge I pointed out yesterday, but only by a wick. This could be a bull trap...however, usually we'd see a rapid drop if it were. As of writing this, it's remaining relatively stable.

Looking at the 4 hour MACD, we can see it broke out of the wedge to the up side. This is another sign of strength.

The wedge on the 4 hour RSI has yet to be penetrated, but it's testing the resistance.

The 8 day EMA looks as if it may cross above the 55 day EMA. This would be another sign of strength.
*If you're unfamiliar with how to use EMA's, reference my post on the topic here: https://steemit.com/cryptocurrency/@workin2005/simple-effective-strategy-to-buying-and-selling-market-trends

The bullish scenario I pointed out yesterday is still very much in play. It's got EOS having completed a WXY pattern and currently on the first of 5 waves up. My only concern with this count is we aren't seeing the spike in volume that usually comes with a healthy impulse wave up. It's still early though. Assuming volume increases, here's how this scenario may play out:

Looking at the 1 hour MACD, we can see bearish divergence. This MAY indicate a drop is coming...possibly just temporary.

The bearish scenario I pointed out yesterday is also still in play. To recap, it's got EOS in 5 waves down...currently on wave 3. This scenario is looking less likely as the third wave is usually the strongest and most impulsive. As of now, we aren't seeing that. The uncertainly in the market is clearly reflected in the chart these past couple days. Still, this count is a possibility. Here's how it may unfold:

These next few days will be very telling for EOS. Will people sell the news or hold on for the coming airdrops? We're in uncharted territory. Should be an interesting show to watch.

BIAS:
Short Term: Neutral
Longterm: Bullish

I hope this has been helpful. I’d be happy to answer any questions in the comment section below. Thanks for stopping by.

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Disclaimer: I am NOT a financial advisor and this is NOT financial advice. Please always do your own research and invest responsibly. Technical analysis is simply a guide. It doesn’t predict the future. Anyone that claims they know exactly what’s going to happen is foolish, lying or both. Technical Analysis should only be used as a tool to help make better decisions. If you enter a trade, I recommend having a stop loss and sticking to it. You will loose at times. The key is to have more wins than losses. With that in mind, I wish you great success.

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