EOS sitting on major support
EOS has done very little over the last few days, as this week has been focused on the $6.00 level. Looking at the chart, you can see that I have a couple of trendlines that sit in this general vicinity, as we are waiting for the next impulsive candle to determine the direction of the marketplace. That being the case, it looks as if the market is sitting on a major confluence of technical analysis factors.
Confluence of supportive factors
The US market is currently hanging around a confluence of supportive factors that should give this market a bit of a floor underneath. Looking at the chart, the most obvious thing of course is the $6.00 level, as large, round, psychologically significant numbers tend to attract a lot of attention. Beyond that, we have the 200 day EMA which is pictured in blue underneath, a long term trend determining moving average for a lot of big money players. Just above, we have the 50 day EMA which of course plays a very similar role.
There is also a couple of lines on the chart to pay attention to. There is the uptrend line underneath that should continue to lift the market, just as there is a horizontal support line in this general vicinity. Overall, this is a market that seems as if it is waiting on the next impulsive move to take advantage of momentum.
Crypto currency moves together
Keep in mind that cryptocurrency markets do tend to move in the same direction. With that in mind, you should pay attention to Bitcoin, Ethereum, and other major crypto currencies to see where EOS may go. As we have seen a lot of bullish pressure in the crypto markets, it makes sense that we will eventually break to the upside so I do of course favor a bullish move. However, if some of the other major crypto currency pairs break down, then that would favor of move down towards the $4.00 level underneath.
The main take away
All of these factors do of course favor the upside, and I am much more comfortable buying EOS than selling it. However, you simply need to follow the crypto currency markets as one commodity essentially, because that’s the way it works. There is no point in trying to fight the overall attitude so pay attention to many of the other crypto currency markets to make your decision. However, all of that being taken into account cannot avoid the fact that we are at an area where you would expect to see a lot of buyers. Because of this, I am much more comfortable buying this market than selling it.
If we do break to the upside it’s very likely that we will reach the $7.00 level, and then eventually the $8.00 level after that. If we break down from here, we could go as low as $4.00 with some support and buying pressure at the psychologically significant $5.00 level which could cause a slight bit of a bounce. It is very likely that we should have a move in the next couple of trading sessions.