As you can see, EOS started a heavy bullrun on March 11th and went 60% up! Big numbers need big retraces so we are currently in the phase of correction. I have two scenarios here, both and which I am going to share with you:
1. On the bullrun we formed a massive flagpole and are currently bouncing between the boundaries of the actual flag.
2. cooled down which gives us the signal, that we have room for new higher highs
3. cooled down and just crossed which is a signal
4. Nevertheless, we don’t make any new high on the charts nor on the Indicators yet
5. If we see a bullrun, our minimum price objective would be the length of the flagpole from the point where EOS decides to break out of the flag, which is at around 11,74 USD
1. The dotted yellow lines show the scenario, which is a
2. A successful break below the triangle and the boundary of the flag would mean – based on my TA – that the bullrun is over and a heavier downtrend is about to happen
How to trade
At the moment and the indecisive situation EOS is moving in, I would not trade this. However, if we break below the boundaries I mentioned above, we would have a good entry to open a short position with tight stops above the then formed resistances.
If we break out, a good entry – accompanied by heavy – would be above the upper line oft he flag.
Trade carefully and always be cautious!