Technical Analysis on EOS: The Bulls Finally Show Up

EOS is showing signs of life today. The bulls came out of the gate swinging. Have we seen the bottom? It's certainly possible.

Looking at the 1 day chart, we can see the lower bollinger band is acting a strong support.

Zooming into the 30 min chart, EOS has broken out of a descending wedge. This is yet another sign the bulls are gaining strength.

The 4 hour chart shows EOS broke above the 8 day EMA. The 21 day is now acting as resistance. EOS has only been able to penetrate with just a wick. A decisive break above (candle closing above) the 21 day EMA would be another major win for the bulls. If it's strongly rejected, we'll know the bears aren't done fighting.

I believe EOS is in 1 of 2 scenarios. The first scenario has it in a WXY correction. Referencing the breakout of the wedge above, I believe wave A has completed. A logical target for wave B would be somewhere between the $11.45 and $12.25 resistance zone. Here's how this count may play out:

The second scenario is more bullish. It's got EOS having completed an ABCDE correction, and currently on 5 waves up. For this count to be validated, we need volume to increase in order to break through the charted resistance.

The 4 hour RSI has been operating within a wedge. It just broke out. This a a very clear sign of strength.

The 1 day RSI is also operating within a wedge. A break above would validate the more bullish,, second scenario.

The 4 hour MACD has just crossed over into bullish territory with no sign of reversing course.

Let's see how the next 24 hour play out. I'm cautiously optimistic. I say "cautiously" due to the rate at which this is rising. We know in crypto, often times a fast rise is followed by a fast drop in price. We will almost certainly see a pull back. The question is how much. If this is a legitimate trend reversal, and not just manipulation, we should see EOS pull back slightly, consolidate, and then resume it's uptrend. Let's see how the next 24 hours play out.

BIAS:
Short Term: Neutral to Bullish
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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by Workin2005

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