EOS: Critical Resistance Battle

31 Mei 2018

EOS made rounds in crypto news recently with some significant bugs (which have been fixed) found just before the main net launch. Regardless, sentiment is fairly divided between those claiming corruption, and those claiming FUD, and this is well reflected in the price.

although the daily chart shows bullish indication, the 1-2-3-4 hour charts tell a different story.

Take a look at the 1-hour EOS chart for example
tradingview.com/chart/AkdBklcn/

A strong support has been identified for this intermediate potential wave 1 (of primary wave 5, which are the riskiest waves to trade) at the 0.5 Fib. Note however, that the price is attempting to break the 12.4$ support for the fourth time, and is seemingly failing as of writing, despite bullish indicators (although consider that MACD is a lagging indicator). Volume also shows lack of strength, as it is below the 20MA.

This doesn't immediately spell doom for EOS, as a bullish retest of the 0.5 Fib zone could incite a final rally to break said resistance. If that happens to be the case, I might enter into a trade for some good swing returns. In that case, I'll outline a stop and R:R ratio for you as well.

I'm setting an alert for the resistance and support zones for the moment.

this isn't financial advice, just my opinion :)

31 Mei 2018

Nota

Apologies, my submission posted a link for some reason, here's the chart I was referring to:

31 Mei 2018

Nota

Here is a larger perspective on the 3hr. There are still some resistances ahead, but we might do well on them.

31 Mei 2018

Nota

Looks like EOS just had a clean break above the 12.4$ on the 3-hour chart (less clean on the 4-hour). Although it's been met by a strong red candle. Let's hope that the resistance has turned into a support, if that's the case, then we should be OK to keep moving towards (and potentially above) the next resistance as it lies nicely in my TP1 zone, which is a pretty conservative target, generally speaking.

If this happens, I'll probably be setting up a trade.

1 Jun 2018

Nota

So EOS just broke back below that line on the 3-hour. As I said before, the 4-hour break wasn't very clean, but this is definitely the furthest it got. Either way, I would call it a resistance again, unless we can break through and hold it.

I've posted a zoomed out view this time because I've notices an interesting (not sure if it has a real technical name) BART pattern. i.e. something that looks like Bart Simpson's hair. It sound silly but it's actually a very clear heavy accumulation/distribution pattern. This doesn't really happen in regulated markets.

In any case, we still haven't broken the top resistance on a decent timeframe, and I won't consider entering until we do.

2 Jun 2018

Nota

Wow! EOS smashed those resistances. Sadly I was away and hadn't set up a limit trade so I missed it. Congrats to those who went up that 26% ride.

If I were in this trade short term, I would consider selling now. 3 reasons:
1- Weakening candles (less body, more wick, generally smaller)
2- Bearishly diverging RSI
3- MACD beginning to round off.

3 Jun 2018

Dagangan ditutup: sasaran tercapai

Congrats to whoever rode EOS up to 15$!

The 4-hour chart looks very bearish (RSI divergence + MACD roundoff + dropping volume)
The pattern looks like clear distribution to me. This signals a drop potential.

I'm closing this trade for now. There's a chance I might re-open it if the Daily chart stays bullish.