Trade Recommendation: EOS
Our May 10, 2019 trade recommendation for EOS (EOS/BTC) was right on the money as it hit both our bottom-picking buy price and both of our selling target prices. Those who followed the trade recommendation grew their investments by over 30% in less than three weeks when the market climbed over 0.0009328 on May 27th.
While EOS overshot our target prices by a bit, we weren’t worried that the market would run away from us. After all, bulls failed to stay above our range midpoint of 0.000895 on June 2nd. That was a signal that the cryptocurrency won’t be touching our range high of 0.00107 anytime soon. So far, our decision to take profits and stay away from the market is paying off.
Technical analysis shows that EOS/BTC is headed for support of 0.00072. If you’ve been following our trade recommendations, you’d know that when bulls fail to take out the range midpoint, it is very likely that the market will be driven down to the range low. In the case of EOS, the range low is 0.00072.
We’re confident that this support will hold for a few reasons. First, 0.00072 is a strong demand area. Bulls fought tooth and nail during the 2018 crypto winter to stay above this price level. While bears were able to breach the support, bulls eventually recovered it. This tells us that the move below 0.00072 is a deviation from the macro perspective.
In addition, the volume on the week of May 27th is among the largest volumes posted by EOS in its history on Binance. Significant volume upticks are signals that the asset is in the latter stages of base building. With that in mind, we believe that EOS will revisit 0.00072 one last time before blasting off.
The strategy is to buy as close to 0.00072 as possible. If bulls can keep the market from falling lower, they will likely generate a rally to our targets of 0.000895 and 0.00107.
The process may take a month.
Weekly Chart of EOS/Bitcoin on Binance
Summary of Strategy
Buy: As close to 0.00072 as possible.
Targets: 0.000895 and 0.00107.
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.