EOS is following the same trajectory as most alt coin and actually had this flash appreciation at this week’s open. So far we don’t have the lower wick but sellers seems to be rejecting any idea of a close beyond $9.5 which we said remains a trigger line for bulls.
Now, from a momentum perspective, bears are in top gear but price action wise, last week’s depreciation was actually capped resulting in that long lower wick whose lows tested the middle BB at around $5.8.
The mere fact that there was a retest of the middle BB gives that flexible support some weight and anyhow, $5.8 or there about is an important support line-previous resistance-after that bull break out candlestick by week ending November 17.
This week, if EOS buyers fail to push and close above $9.5, then we expect prices to trend within our main support at $5.5 and the first extension line at around $9.
In the daily chart, we can see the selling effect and the reaction of bears at $9.5-which by the way flashes with the 50% Fibonacci retracement level.
EOS buyers have been retesting this level and even if they breach it today, we shall have to shift our attention to the middle BB which by the way is our ultimate trigger and bull/bear divider.
Any strong close above $11 or 38.2% Fibonacci retracement and the middle BB will act as a spring board for bulls looking to buy on dips at around $9.5-$10
Here we can see that prices are at the third stage of an ascending wedge and from similar set ups, this is when break outs tend to happen.
The lower and the upper limits of this wedge are our triggers and after all, any bull break out means our buy triggers at $9.5 would have been cleared and we should be picking buys if there is a close beyond $11.