Hi friends! Welcome to this update analysis on EOS! let's get right to it! Looking at the four hour chart, you can see that EOS has broken down hard from the false flag that I published on 4/13. If you recall from that post, I said "Once the breakdown starts to occur, initial support may be found at the 61.8% retrace, around 7.45. That level will be converging with the 50 EMA (in orange) so that would increase the likelihood of initial support. Below there, EOS has the 200 EMA (in purple) and then the rising dashed support level." As you can see, the 50 EMA has risen above the 618. At the time of my last analysis, the 50 EMA was still below the 618. Now that it's above, it has become the first downside level of support. If the 50 EMA falls, the 61.8% retrace will be the next level of support, followed by the 200 EMA (in purple) and the rising dashed trendline support.
On the MACD, you can see that we're approaching the zero line, as sell side momentum expands to the downside. If the MACD breaks below the zero line, that will be a technical sell signal, but I wouldn't recommend jumping into new short positions here, unless we break down below the rising dashed trendline. I say that because any one of the aforementioned support levels could cause a reversal back to the upside. The best place to short, would have been the confirmation of resistance on the bottom of the false flag. The next ideal short would be a confirmed breakdown below the rising dashed trendline, if/when EOS gets down there. If you did happen to short the breakdown of the false flag, for educational purposes, it would be wise to take profits at the support levels on the way down.
Now that EOS has produced a nasty breakdown from the false flag, and the false flag breakdown in BTC is just beginning, we have to wonder if EOS and other alts are leading BTC a bit. EOS broke down on the 13th, and BTC broke down on the 16th. So, perhaps we will see a similar drop in Bitcoin, now that we can see that EOS and other alts are leading BTC to the downside.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-
Kommentar
⋅
For some reason the "Confirmed resistance" bubble got pushed into the chart. Sorry about that.
Oh man you are so intelligent. A top analyst. Lmao.
Paradigm9
⋅
@Paradigm9, Seriously, can you come work with our firm and give us tips on how to play the markets? I am honestly so deeply interested in your TA. It is so amazing.
thunderstrike
⋅
I got another future crystal ball prediction that you can draw on chart and sell to every one. In Jul when EOS goes mainnet. In December when EOS opens their exchange.
You can tell every one you predicted it hahah.
El-Flaco
⋅
Um you didn't need any analysis for this. The EOS air drop was on the 15th. Of course people were going to sell once they got it.
MagicPoopCannon
⋅
@EdBurrows, Um, then why do you look at charts? Why don't you just go off of the news?
TradeRepository
⋅
@MagicPoopCannon, Was I supposed to be buying this since it was going to bounce?
Or have you got to the point where you just post the obvious now?
El-Flaco
⋅
@MagicPoopCannon, Your TA is good, I just think it would be even better if blended with key events, like in this particular case
marco8484
⋅
@EdBurrows, That's not quite correct, interestingly the selling started before the Airdrop, in fact right before the Airdrop which - if you believe the pump was due to airdrop - is very very odd. But yes EOS was leading the Altcoin run, btw.
IMHO it was a pump on the back of some "Airdrop" which at the beginning nobody really knew and nobody really understood. Whoever pumped it was sure that the Airdrop wasn't such a huge thing in the end, and anticipated that after the Airdrop it would be falling off the cliff, so starting to sell even before the cut off time.