Regera

EOS to test 50MA/upper trend line?

Long
BINANCE:EOSUSDT   EOS / TetherUS
EOS is showing some support and looks poised to move up. Weekly had a solid hammer candle followed by 2 doji which translates to a frypan bottom (support before reversal) on the daily.

The daily 50MA and weekly 8MA show resistance right around the orange upper trend line , any of which are a target to exit. Taking profit at that resistance would net roughly a 25% ROI and 40% at the teal belt line resistance (~$6.00). A stop loss set at $4.00 would trigger a ~6% loss for a minimum reward:risk ratio of ~4:1 which is quite healthy.

As always, alts are at the mercy of BTC so if you've been following my BTC analysis we could be in for a drop which could kill this idea quickly so plan accordingly.
Comment:
I wanted to show some additional info without cluttering the original chart. As you can see there's an inverted H&S formation. Note the gaps in white and the peaks that follow after the 25MA crosses over the 50MA. This would be an ideal position to exit as price tends to retrace more often than not. The RSI runs true in that there's no hidden divergences after EOS is oversold so if EOS breaks the current RSI trendline (yellow) that wouldn't bode well for triggering the stoploss.

Comments

Nevermind... I didn’t read your last sentence... apologies
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I think that your TA is excellent, however, I think that TA on alts is not meaningful given that they follow BTC. The alts to US$ pairs will go up when BTC is going up against the dollar and they will fall when BTC falls, irrespective of what is on their chart. What do you think?
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Regera LTSInvestor
@LTSInvestor, Agreed but unless BTC dumps hard the alt/BTC pairing should increase and lessen the drop. In some cases it gives it the kickstart it needs to start the move up (see LINK's move yesterday). Right now BTC could retrace back to the infamous red trend line (~$10.6k) and EOS would trade well within the support. If BTC were to drop 10%... then it's likely EOS drops to the stop loss and we'd be looking at the double top validating again which would send everything down.
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Powerful trendline, nice man>!!
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