Our April 13, 2019 trade recommendation for EOS (EOS/USD) hit its initial target price. On May 16th, the market pushed as high as $6.8818. Those who followed the trade suggestion grew their investments by over 50% in about a month.
Now, the second target of $9.20 still applies. However, EOS is rapidly becoming bullish so we have to adjust upwards. Those who bought at $4.50 can use this guide to increase both their stop loss and price targets. Others can hop on the bandwagon now before the fireworks begin.
Technical analysis shows that EOS has broken out of a large inverse head and shoulders pattern on the daily chart when it breached resistance of $6 on May 15th. This triggered a breakout rally that catapulted the market to $6.8818 on May 16th.
While the breakout rally was short-lived, we are still confident that EOS is bullish. A throwback often happens after a breakout. This means that the inverse head and shoulders breakout is still valid even if the market moved below the neckline of $6.
In addition, the diagonal support of EOS is still intact. This tells us that the market’s bullish sentiment is still strong.
The strategy is to buy on the recovery of $6 as support. If bulls can reclaim this level, they’ll effectively reverse the market’s trend and consequently likely ignite a massive disbelief rally to our target of $10.
The process may take more than a month.
Daily Chart of EOS/US Dollar on Bitfinex
Summary of Strategy
Buy: Once the market recovers $6.
Stop: $5.70 after the recovery of $6.
Disclaimer: The writer owns bitcoin, Ethereum, and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.