EOSUSD - Double Top Trend Reversal Pattern

The market forms a double top chart pattern which belongs to trend reversal patterns. If it is confirmed, the market will have the potential for falling to the previous strong support at 1.5500 level. In order to get confirmation, the price needs to drop below the swing low, SMA50, SMA100, the uptrend line, and 3.0000 support level. The market will need strong reasons for passing through such a strong support zone.

If the price bounces from the support zone, it will give us a buy opportunity based on a reversal signal. Stop orders for such long positions should be placed below the support zone.

If the price can break 4.5000 resistance and moves above the tops, it will confirm the strength of buyers. It will be possible to open long positions based on this breakout only if you are ready to take part in long term trading. For short term and medium term buying it will be better to wait for a correction and buy from support levels and lines using reversal signals.