Trade Recommendation: EOS
Our February 19, 2019 trade recommendation for EOS (EOS/USD) hit both targets. If you bought on dips and waited for our second target of $5 to get hit, you would have likely grown your investments by almost 40% as of April 2.
While the market overshot our target, it did not bother us because, at that point, EOS was already trading in overbought conditions. We were not expecting the market to run away from us. So far, the coin is moving according to expectations. Thus, we can be patient and wait for a better entry point.
Technical analysis shows that EOS is enroute to support of $4.50. We have this view because the market is still trading near overbought conditions. It must cool off before it can ignite another move up.
In addition, the weekly chart shows that EOS bulls have managed to reclaim an important level when the price surged past $4.50. In March 2018, the market relied using this support to stage a parabolic run that sent EOS to as high as $23.029 in April 2018. When the bear market dawned on EOS, bears struggled for three months before they could break support of $4.50. So when the market broke below this area in November 2018, EOS nosedived to a low of $1.55 in December 2018.
With the recovery of this key support, bulls are very likely to aggressively buy dips close to this area. We won’t be surprised if they build a new base around $4.50 before launching another bull run.
The strategy is to buy on dips as close to $4.50 as possible. If bulls can stay above this support, they’ll likely gather the momentum to rally to our targets of $6.60 and $9.20.
The process may take more than a month.
Daily Chart of EOS/US Dollar on Bitfinex
As of this writing, the EOS/US Dollar pair is trading at $5.3704 on Bitfinex.
Summary of Strategy
Buy: As close to $4.50 as possible.
Targets: $6.60 and $9.20.
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.