Trade Recommendation: EOS

EOS (EOS/BTC) is a good example of a market that’s settling to a higher range. You may want to use it as an example of how markets typically move during bullish conditions.

EOS bottomed out around support of 0.0005 on December 7, 2018. At that point, we expected the price to range trade between 0.0005 and 0.00073. That’s exactly what the market did for over two months. A week ago, however, we noticed that this coin was looking ripe for a breakout. This is something that we reported to you in our previous week’s 5 Altcoins watchlist series. This crypto did not disappoint, as bulls finally found the strength to trend higher.

Technical analysis shows that EOS/BTC has taken out our previous range high of 0.00073 on February 8, 2019. This triggered the breakout from the cup and handle pattern on the daily chart. The breakout ignited a rally that saw the price climb as high as 0.000777 on February 10.

If you failed to ride this breakout, don’t worry because EOS is showing signs of retracement. The market is in overbought territory on the daily chart. In addition, the price appears to respect the 200-day moving average as its resistance. These signals indicate of a possible revisit to support of 0.00073.

The strategy is to buy on dips as close to 0.00073 as possible. As long as EOS trades above this level, bulls will likely gather the momentum to climb to our target of 0.0008274. Take that out and the next target is 0.000926.

The process may take less than a month.

Daily Chart of EOS/Bitcoin on Binance

As of this writing, the EOS/Bitcoin pair is trading at 0.0007637 on Binance.

Summary of Strategy

Buy: As close to 0.00073 as possible.

Targets: 0.0008274 and 0.000926.

Stop: 0.0007

 

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.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.