EOS
Panjang

EOS: Should We Break Our Own Rule?

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Over the last month, we have had success with one simple rule: Don't chase altcoins when they rally.

That thinking has worked like a charm in smaller altcoins. That said, looking at the EOS chart, it may be time to start buying small dips and go with the recent rally. Reason: The EOS two-day chart shows a bounce off a stable support zone. It looks a lot like the Ethereum (ETH) chart.

EOS also has a strong stochastics picture. Stochastics are a measure of market momentum. Recently, EOS dropped a lot. When EOS dropped and made a new low for the short term down move, stochastics did not make a new low. If anything, they made a higher lower. In addition to that, stochastics are crossing upward from oversold levels. This type of picture is called bullish stochastics divergence. In the past, bullish divergence on a two-day chart has sometimes led to massive rallies.

Bottom Line: It may be time to buy the next small dip in EOS. If it works out to be a good trade, a bottom may be in place.

Penafian

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