Our April 21, 2018 trade recommendation for EOS/US Dollar (EOS/USD) achieved the target of $13.50 three days later. The pair was able to attract so much bullish momentum that it went as high as $23.0290 on April 29. At this point, however, the market was in extreme overbought territory.
Those who followed the trend are now locking gains. The increased selling activity is driving the pair down to support of $16.00. The good news is the support appears to be holding. This could be your chance to ride the next wave up.
Technical analysis show that EOS has triggered the rounding bottom reversal pattern on the daily chart when it breached resistance of $16.00 on April 27. The move appears to have coincided with the market’s third wave. Volume has also exponentially grown, which means that we are most likely in the public participation phase of an uptrend. This stage offers a lot of opportunities to generate profitable trades.
Currently, the correction seems to be the fractal fourth wave of wave three. The next wave up should take us to our target.
The strategy is to buy as close to $16.00 as possible. Once the correction is over, the market may explode to our target of $26.
The process may take a month.
Daily Chart of EOS/USD on Bitfinex
As of this writing, the EOS/US Dollar pair is trading at $17.55 on Bitfinex.
Summary of Strategy
Buy: Buy on dips as close to $16.00 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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