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.
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.