EOS: Head and Shoulders Continuation Pattern 1D (Jun. 1)

X Force Global Analysis:


Unlike other altcoins that have shown strong momentum during their bullish rally, EOS has been rather quiet, showing only steady growth. In this analysis, we explore EOS' bearish probabilities, mainly based on its head and shoulders continuation pattern.

Analysis

- The first thing we note in this chart is the head and shoulders pattern
- While many traders recognize this pattern (and the reverse head and shoulders pattern) to be a reversal pattern, it can also function as a continuation pattern
- In this chart, we have seen strong bearish pressure, and a downtrend before bouncing off support to form a head and shoulders pattern
- The neckline is at around 2.4 USDT, and the ascending trend line support is still intact
- The two shoulders have formed as a rejection from the 0.236 Fibonacci retracement resistance
- A break down from the neckline support and ascending trend line support would provide confirmation for a move down to the 0.786 Fib support.


What We Believe

Given that the bitcoin dominance chart looks bullish, it's reasonable to assume that probabilities for a bearish case remain high.

Trade Safe.