Technical Analysis on EOS: Still in a downtrending channel

EOS has been trapped in a descending channel for over 2 months now. Today it attempted another breakout, but was strongly rejected.

Looking at the daily chart, we can see the bears were able to push price below the 8 day EMA. This, along with low volume, is a sign the market is weakening.

The 4 hour RSI decisively broke below the ascending support...another sign of weakness.

Price is currently sitting right on top of the $8.12-$8.00 support zone. If this support zone fails, price will likely drop into a stronger support/demand zone between $7.70-$7.30. Should that happen, I’d expect a bounce. There are numerous unfilled buy orders in that area. Here’s how that scenario MIGHT play out:

Just in case price does fall into the $7.70-$7.30 support/demand zone, I may stack orders between $7.50-$7.10. A logical target would be the small supply zone between $8.68-$8.90. Should price reach these levels, this would be a VERY risky trade. If entering, I'd keep my stops extremely tight.

Please refer to my video analysis below for MUCH more detail not found above.

Video Analysis:

BIAS:
Short Term: Neutral
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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by Workin2005

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