Hello traders, we see an interesting pattern forming with the trading pair EOSUSD
on the daily chart
. After the hard decline from last year 2018, we see a healthy uptrend provided in the chart you see. EOS is forming an ascending wedge
which you can see in blue on my chart. EOS is trading since december 2018 in this wedge
and it isnt completed yet. In the red circle which you can see in my chart, we see EOS is sturggling to hold this level on the lower line of the wedge
. Normally these patterns are known to break to the downside with heavy decline. On the other side descending wedges
are known to break to the upside and rise heavily. We have to see if EOS can hold this level and form some more upward movements. Theoretically speaking it is possible for EOS to stay in the ascending wedge
till it is finsihed. The fact that this is an wedge
makes it possible that EOS continues the uptrend in near future. BUT when we cant hold this level, when we can hold the lower boundarie of the wedge
this is critical for EOS, we may see an heavy downtrend. The next support, if this downtrend establishes, is the 61.8 % retracement of the uptrend which you can see in my chart. I hope the best for EOS and best wishes to all EOS fans. But when we cant hold this level and form decent support in the future here i will open a short position in the breakdown area. The first target will be the 61.8% retracement
in the 4.0 to 4.8 USD area. When this scenario shows up we have to see what EOS will provide to us. Otherwise, on the other hand it is important to hold the wedge
to form some more upward movements with good momentum.
Thank you for watching and have a nice day!!