EOS breaks free!
Hi friends! Jumping right in here to a 4 hr chart of EOS. It has FINALLY broken free of the nasty downtrend line (in black) coming off the peak on Jan 12. It had a failed breakout attempt that started on Feb 27. Note how it rode that trend line right down to the bottom and then constantly went back and forth? It was testing it as support/resistance. Now EOS has broken free, thanks to the bull flag that started on March 19. The bears went into defense mode and tried to hold the line, but it looks like the bulls came back with another flag of their own as well.
Where are we now? Both the 20 EMA (blue) and the 50 EMA (orange) are below us. Look for a short term pullback to test those levels as support. Right now we are hitting resistance from the 78.6% retrace from the peak on Jan 21. If we see a break to the upside of that the next resistance is around $7.57, and $7.93, $8.47, etc. So you can see we have a whole zone of confluence just above us and that's why the upward move has stalled despite the spike in volume (actually double the normal volume).
That being said, we are FINALLY out of the black trend line so it LOOKS like we are putting in a bottom here now that we have moved past that trend line.
Anything can still happen at this point. Lets keep an eye on it and see if we start a trend here!
Good luck trading!
All of the preceeding is not to be taken for advice but only educational purposes only.
Where are we now? Both the 20 EMA (blue) and the 50 EMA (orange) are below us. Look for a short term pullback to test those levels as support. Right now we are hitting resistance from the 78.6% retrace from the peak on Jan 21. If we see a break to the upside of that the next resistance is around $7.57, and $7.93, $8.47, etc. So you can see we have a whole zone of confluence just above us and that's why the upward move has stalled despite the spike in volume (actually double the normal volume).
That being said, we are FINALLY out of the black trend line so it LOOKS like we are putting in a bottom here now that we have moved past that trend line.
Anything can still happen at this point. Lets keep an eye on it and see if we start a trend here!
Good luck trading!
All of the preceeding is not to be taken for advice but only educational purposes only.
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