EOS daily chart made its downward movement to the price level of $4.1 and bounced up towards the resistance level of $5.0, suggesting that there could be a form of a bullish reversal this week.
Key Highlights
- There is a probability of the bullish trend reversal;
- consolidation pattern is currently confirmed;
- traders should be patient for a break out at the resistance level or support level before taking a position.
EOSUSD Long-term Trend: Bearish
Resistance levels: $5.0, $7.0, $9.0
Support levels: $4.1, $2.0, $0.5
The formation of a strong bullish candle at the level of $4.1 suggesting that there could be a form of a bullish reversal this week. The Stochastic Oscillator period 14 is above the level 30, with signal lines pointing upward, indicates that the market may be headed towards north.
There was a continuation of downward movement after the price retracement to the resistance level of $5.0. The 10-day EMA moved farther away from 50-day EMA, and the price reached the support level of $4.0 where it bounced back upward towards the resistance level of $5.0.
This week, the price started consolidation after upward movement towards the resistance level of $5.0. Should EOS price go up and break the resistance level at $5.0 and produce a medium-term bullish candle, then an upward movement could be anticipated, which would result in a bullish signal.
EOS is currently hovering within the resistance level of $5.0 and the support level of $4.1. This is a short-term ranging movement, which may change soon. Should the support level of $4.1 get broken with the formation of a strong bearish candle, the price will be exposed to the support level of $2.0. as the Stochastic Oscillator period 14 is below 50 with signal lines pointing downward. Traders should be patient for a break out at the resistance level or support level before taking a position.
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