Technical Analysis on EOS: Looking for bottom

EOS has broken below numerous support zones. It’s now hovering around $7.00, which is a very strong psychological support. We need to see a large increase in volume to break above many areas of resistance. Remember, what was support, will now likely act as resistance. If price breaks decisively below $7.00, there’s a real possibility it’ll drop to the $6.00-$5.75 support/demand zone. To the upside, we can expect immediate resistance between $7.30-$7.70. Above that, it’ll likely find resistance between $8.00-$8.12.

Price dropped below the prior swing low. This means we can no longer consider the prior uptrend as 5 waves up. From an Elliot wave perspective, this means we are continuing the larger correction. Zooming out on the 4 hour chart, we can see what appears to be an ABC correction following the all time high of around $23.00. Price then looks to have attempted another breakout, only to result in a failed wave denoted by “X”. If this is accurate, that puts EOS in a WXY pattern. Following the failed wave, we have what appears to be an ABCDE correction. That would put EOS currently on wave E, looking for a bottom.

Price has been trapped within a descending channel as shown above. Looking at the 4 hour RSI, we find it's been unable to break above a descending resistance line. I won't be interested in any long positions until the bulls are able break out of both.

Watch my video analysis for MUCH more detail not found above.

VIdeo Analysis:

BIAS:
Short Term: Slightly Bearish
Longterm: Bullish

I hope this has been helpful. I’d be happy to answer any questions in the comment section below. Until next time, wishing you safe and profitable trading!

Workin

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