Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be taken as funding recommendation
Difficult the higher trendline of a parallel channel at press time, EOS regarded to set a rally in movement on the again of an upwards breakout. Nonetheless, bearish divergences alongside the RSI and Superior Oscillator steered in any other case and highlighted a potential run right down to the decrease trendline.
With the market presenting alternatives for each patrons and sellers, merchants ought to be looking out for key zones earlier than putting their bets.
On the time of writing, EOS was buying and selling at $4.85, up by 1.3% over the past 24 hours.
EOS 4-hour Chart
Supply: EOS/USD, TradingView
Discounting a false breakout on 9 October, EOS has traversed inside the confines of a parallel channel over the past 26 days. Now, within the final 5 days alone, EOS has tried to interrupt north of this sample on three events, however with none success.
Ought to EOS weaken under the 50-SMA (yellow) and mid-line of the sample after a triple prime, a more moderen low round $4.4 could be anticipated. The presence of the 4-hour 200-SMA (inexperienced) alongside the decrease trendline might assist cushion a breakdown. Nonetheless, bears can press additional in case EOS slips under this sturdy confluence.
In the meantime, bearish divergences on the RSI solely bolstered the notion of a failed breakout try. Even the Superior Oscillator threatened to maneuver under its half-line after registering a bearish twin peak. Nonetheless, the MACD maintained a slight bullish benefit by buying and selling above its equilibrium mark.
If EOS witnesses a direct upwards breakout, bulls would wish to get previous promote strain at $5.08 to be able to maximize positive aspects.
Merchants ought to hold their eyes peeled for a purchase alternative in case EOS closes above the higher trendline and $5.08. Nonetheless, the 24-hour buying and selling volumes are but to build up for a sustained rally.
On the flip facet, short-sellers can look to position bets as soon as EOS weakens under the 50-SMA (yellow) and mid-line of the parallel channel.