22 C
Manchester
July 17, 2019
Image default
eos recommendation

Trade Recommendation: EOS

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

EOS chart
As of this writing, the EOS/US Dollar pair is trading at $5.8121 on Bitfinex.

Summary of Strategy

Buy: Once the market recovers $6.
Target: $10
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.

Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More