Equilibrium| Double Top| Trend Change ?

6 Jan 2020Hello Traders!

Today’s chart update will be on EOSBTC with a potential daily trend change coming to fruition.

There are key levels that must break for further confirmation on a bullish bias.

Points to consider,
- Trend putting in higher lows
- EMA’s turned support
- Local resistance being tested
- Volume declining
- RSI approaching resistance
- Stochastics in upper regions
- VPVR decreasing in volume of transactions

EOS has established a trend line with a third touch confirming a higher low on the daily. Bulls need to defend this line for a continued bullish bias.

EMAs have turned support and is currently holding price near local resistance, signalling that buyers are picking up momentum.

Local resistance is a key level to break in the trend as this will put in a new higher high, confirming the structural change of the trend. Volume is declining; an influx of volume at key levels will indicate an actual break.

The RSI is approaching its resistance; a rejection will send it back to neutral levels, as it has multiple times now. The Stochastics is currently in the upper regions, can stay here for an extended period of time, however lots of stored momentum to the downside.

The VPVR, decreases in volume of transactions upwards from local resistance, this shows low resistance for the bulls in the metric of volume of transactions.

Overall, in my opinion, EOS is in a potential equilibrium with a clear double top to break for a full trend change confirmation. EOS is already showing early signs by putting in higher lows; it just needs to break key resistance levels.

What are your thoughts?

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And remember,

The market can stay irrational longer than you can stay solvent. - John Maynard Keynes