EOS\USD Trading Ideas: 05/31

Exrates.me
May 31 · 4 min read

This is a daily chart EOS against USD

We perfectly have broken the 4.45$ resistance level where the price has been stagnating for 4 months, at first we’ve bounced to consolidate the power and after that, with huge volume, the level has been broken.

Since the 1.5$ 7 Dec price EOS goes inside the channel and 458% increase.

The trend is strong so let’s find some good entries here

On the daily chart, we had a perfect doji with the next bearish candle as confirmation, the same time RSI was overbought, but the 5.88 has been held. The price is climbing higher but yesterday we had another red candle with good volumes and now RSI is painting a double top. The signal line of MACD is separating too.

The nearest support level is 5.90$ so if we want to buy EOS there will be the first point.

If the 5.90$ support will be broken — wait for 4.40$

Fibonacci retracement shows almost the same levels

0.382 level exactly at 5.90$ and 0.618 placed at 4.22$

Let’s try to adjust EOS to Elliotte waves

Fits perfectly, right? As we know the waves are fractal just to make sure is not a magic

Seems like we got the maximum 4.236 by Fibo in the 3d wave and the levels fit perfectly too.

If we are right it means we are starting to form the 4th wave and this is the wave which is going to take all your money if you want to make technical deals

So if you like to listen to Elliotte wave theory you want to buy EOS using Fibo levels but you also should remember the 4th wave can go down to 3.00$ (this is the wave number 1) Sounds crazy when the price is around 8$ but I hope everybody has learned the crypto lessons. So here are the fibo levels where you want to buy 0.382 and 0.618

One more scenario if we got the extended 5. In this case, we are going to get the correction for the whole impulse not just for the 3d wave

Here you can see what we have in the order book at this moment on the top exchanges

and how asks exceed bids

The ratio of the depth

Conclusions:

In the short term perspective, more likely EOS is going to rollback and if you want to catch the countertrend your entry looks like that

You wait for the five waves down and open your short after ABC correction

Entry zone is 7.65–8.17$, stop-loss 8.6$, take profit — 6.00$

In the long-term perspective, the entries look like that

Buy zone is 4.3–4.6$, stop — 3.5$, take profit — 8$, 10$, 12$

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