Trade Recommendation: EOS
The EOS/US Dollar (EOS/USD) pair bounced off lows of $4.1778 on August 14, 2018. At that price point, the market was down by more than 80% from the 2018 high of $23.029.
Many retail investors won’t touch an altcoin that has lost so much in four months. However, the charts are telling us that we may possibly be at the point of maximum financial opportunity. What this means is that at this point, the risks are minimum but rewards are sky high.
Technical analysis show that EOS has broken out of the large falling wedge on the daily chart. In fact, the breakout is yesterday’s news. What’s relevant right now is how the market is using the former resistance as a support.
Yesterday, September 6, 2018, EOS dropped to as low as $4.8365 but then bulls came in to lift up the market. As a result, we got a bullish pin bar that’s on top of the new support. In addition, the RSI is using the former resistance of 40 as a new support. This tells us that bulls are extending their territory. More importantly, we might be seeing the development of bullish higher low setups.
The strategy is to buy on dips as close to $4.80 support as possible. If bulls keep the market above this level, they will attract the required momentum to climb to our target of $7.56.
The process may take a month.
Daily Chart of EOS/US Dollar on Bitfinex
As of this writing, the EOS/US Dollar pair is trading at $5.0222 on Bitfinex.
Summary of Strategy
Buy: On dips as close to $4.80 support as possible.
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.
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